Capital One Financial (NYSE:COF – Get Free Report) and PRA Group (NASDAQ:PRAA – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.
Valuation and Earnings
This table compares Capital One Financial and PRA Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Capital One Financial | $69.25 billion | 1.93 | $2.45 billion | $16.16 | 13.49 |
| PRA Group | $1.20 billion | 0.61 | -$305.14 million | ($6.73) | -2.91 |
Analyst Recommendations
This is a breakdown of recent recommendations for Capital One Financial and PRA Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Capital One Financial | 0 | 3 | 21 | 0 | 2.88 |
| PRA Group | 1 | 2 | 1 | 1 | 2.40 |
Capital One Financial currently has a consensus price target of $259.14, suggesting a potential upside of 18.84%. PRA Group has a consensus price target of $26.00, suggesting a potential upside of 32.79%. Given PRA Group’s higher possible upside, analysts clearly believe PRA Group is more favorable than Capital One Financial.
Insider & Institutional Ownership
89.8% of Capital One Financial shares are owned by institutional investors. Comparatively, 97.2% of PRA Group shares are owned by institutional investors. 0.8% of Capital One Financial shares are owned by insiders. Comparatively, 2.2% of PRA Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Capital One Financial and PRA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Capital One Financial | 13.37% | 11.28% | 1.90% |
| PRA Group | -19.91% | 15.56% | 3.18% |
Volatility & Risk
Capital One Financial has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, PRA Group has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
Summary
Capital One Financial beats PRA Group on 8 of the 15 factors compared between the two stocks.
About Capital One Financial
Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.
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.
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