PRA Group (NASDAQ:PRAA – Get Free Report) and Oportun Financial (NASDAQ:OPRT – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Volatility & Risk
PRA Group has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
Earnings & Valuation
This table compares PRA Group and Oportun Financial”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PRA Group | $1.20 billion | 0.63 | -$305.14 million | ($7.16) | -2.76 |
| Oportun Financial | $395.98 million | 0.94 | $25.25 million | $0.40 | 20.22 |
Oportun Financial has lower revenue, but higher earnings than PRA Group. PRA Group is trading at a lower price-to-earnings ratio than Oportun Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for PRA Group and Oportun Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PRA Group | 1 | 3 | 1 | 0 | 2.00 |
| Oportun Financial | 1 | 2 | 2 | 0 | 2.20 |
PRA Group currently has a consensus target price of $26.00, indicating a potential upside of 31.38%. Oportun Financial has a consensus target price of $7.33, indicating a potential downside of 9.35%. Given PRA Group’s higher probable upside, research analysts clearly believe PRA Group is more favorable than Oportun Financial.
Institutional and Insider Ownership
97.2% of PRA Group shares are owned by institutional investors. Comparatively, 82.7% of Oportun Financial shares are owned by institutional investors. 2.2% of PRA Group shares are owned by company insiders. Comparatively, 1.6% of Oportun Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares PRA Group and Oportun Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PRA Group | -19.91% | 15.86% | 3.20% |
| Oportun Financial | 2.05% | 13.55% | 1.65% |
Summary
Oportun Financial beats PRA Group on 8 of the 14 factors compared between the two stocks.
About PRA Group
PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans worldwide. It is involved in the purchase of accounts that are primarily the unpaid obligations of individuals owed to credit originators, which include banks and other types of consumer, retail, and auto finance companies. The company also acquires nonperforming loans, including Visa and MasterCard credit card accounts, private label and other credit card accounts, personal loans, automobile loans, and small business loans from banks, credit unions, consumer finance companies, retailers, utilities, automobile finance companies, and other credit originators. In addition, it provides fee-based services on class action claims recoveries. The company was formerly known as Portfolio Recovery Associates, Inc. and changed its name to PRA Group, Inc. in October 2014. PRA Group, Inc. was founded in 1996 and is headquartered in Norfolk, Virginia.
About Oportun Financial
Oportun Financial Corporation provides financial services. The company offers personal loans and credit cards. It serves customers through online and over the phone, as well as through retail and Lending as a Service partner locations. The company was founded in 2005 and is headquartered in San Carlos, California.
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