PRA Group (NASDAQ: PRAA) and Dun & Bradstreet (NYSE:DNB) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.
Volatility and Risk
PRA Group has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Dun & Bradstreet has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
Insider & Institutional Ownership
94.6% of Dun & Bradstreet shares are owned by institutional investors. 2.1% of PRA Group shares are owned by insiders. Comparatively, 0.3% of Dun & Bradstreet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares PRA Group and Dun & Bradstreet’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PRA Group||$813.57 million||2.22||$162.26 million||$1.33||30.00|
|Dun & Bradstreet||$1.74 billion||2.63||$140.90 million||$7.36||16.85|
PRA Group has higher earnings, but lower revenue than Dun & Bradstreet. Dun & Bradstreet is trading at a lower price-to-earnings ratio than PRA Group, indicating that it is currently the more affordable of the two stocks.
Dun & Bradstreet pays an annual dividend of $2.09 per share and has a dividend yield of 1.7%. PRA Group does not pay a dividend. Dun & Bradstreet pays out 28.4% of its earnings in the form of a dividend. Dun & Bradstreet has increased its dividend for 11 consecutive years.
This table compares PRA Group and Dun & Bradstreet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dun & Bradstreet||10.64%||-33.35%||12.68%|
This is a summary of recent ratings and recommmendations for PRA Group and Dun & Bradstreet, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dun & Bradstreet||0||3||2||0||2.40|
PRA Group presently has a consensus target price of $40.00, suggesting a potential upside of 0.25%. Dun & Bradstreet has a consensus target price of $129.00, suggesting a potential upside of 4.05%. Given Dun & Bradstreet’s stronger consensus rating and higher probable upside, analysts clearly believe Dun & Bradstreet is more favorable than PRA Group.
Dun & Bradstreet beats PRA Group on 10 of the 17 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 in the Americas and Europe. It is involved in the acquisition of accounts that are primarily the unpaid obligations of individuals owed to credit grantors, which include banks and other types of consumer, retail, and auto finance companies. The company also acquires nonperforming loans, including Visa and MasterCard credit cards, private label and other credit cards, installment loans, lines of credit, deficiency balances of various types, legal judgments, and trade payables from banks, credit unions, consumer finance companies, telecommunication providers, retailers, utilities, automobile finance companies, student loan companies, and other debt owners. In addition, it provides fee-based services comprising class action claims recovery services and purchases; servicing of consumer bankruptcy accounts; and contingent collections of nonperforming loans. 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 Dun & Bradstreet
The Dun & Bradstreet Corporation provides commercial data, analytics, and insight on businesses. The company operates through two segments, Americas and Non-Americas. It offers risk management solutions comprising trade credit solutions, such as The D&B Credit Suite, which includes D&B Credit and DNBi, subscription-based online applications that offer customers real time access to information, comprehensive monitoring, and portfolio analysis; various business information reports; and D&B Credibility solutions primarily for small businesses; Supplier Risk Manager, an online application that helps businesses mitigate supply chain risk; Compliance product suite that includes D&B Onboard and D&B Compliance Check, which helps customers comply with anti-money laundering and anti-bribery and corruption regulations through onboarding, screening, and monitoring of customers and third parties; and D&B Direct, an API that enables data integration inside enterprise applications, such as ERP, and enables master data management and toolkit. The company also offers sales acceleration solutions that enable B2B sales and marketing professionals to accelerate sales, enhance go-to-market activity, engage in a meaningful way, and close business faster; MDR Integrated Education Marketing, a source for education data services, sales tools, digital marketing solutions, and market research. In addition, it offers marketing solutions, such as Optimizer, a master data solution; D&B Master Data that empowers customers to understand business relationships; D&B Audience Targeting, which helps customers serve the right ads to the right audiences; and D&B Visitor Intelligence that helps B2B marketers unmask anonymous Web traffic in real-time. It serves customers in communication, technology, government, strategic financial services, retail, telecommunications, and manufacturing. The Dun & Bradstreet Corporation was founded in 1841 and is headquartered in Short Hills, New Jersey.
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