PRA Group (NASDAQ:PRAA) vs. Oportun Financial (NASDAQ:OPRT) Critical Survey

Oportun Financial (NASDAQ:OPRT) and PRA Group (NASDAQ:PRAA) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Volatility and Risk

Oportun Financial has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, PRA Group has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Profitability

This table compares Oportun Financial and PRA Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oportun Financial	3.88%	14.67%	1.87%
PRA Group	12.06%	14.48%	3.03%

Earnings & Valuation

This table compares Oportun Financial and PRA Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oportun Financial	$956.70 million	0.57	$25.25 million	$0.74	15.89
PRA Group	$1.20 billion	0.37	-$305.14 million	$4.09	2.90

Oportun Financial has higher earnings, but lower revenue 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 Recommendations

This is a summary of current ratings and recommmendations for Oportun Financial and PRA Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oportun Financial	0	3	2	1	2.67
PRA Group	2	2	0	0	1.50

Oportun Financial presently has a consensus target price of $9.25, indicating a potential downside of 21.34%. Given Oportun Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe Oportun Financial is more favorable than PRA Group.

Insider & Institutional Ownership

82.7% of Oportun Financial shares are held by institutional investors. Comparatively, 97.2% of PRA Group shares are held by institutional investors. 1.6% of Oportun Financial shares are held by insiders. Comparatively, 2.2% of PRA Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Oportun Financial beats PRA Group on 9 of the 15 factors compared between the two stocks.

About Oportun Financial

Oportun Financial provides consumer financial products designed primarily for people with limited or no credit history. Its offerings include personal loans and credit cards, supported by technology intended to help customers access credit and build their financial histories. Founded in 2005 as Progreso Financiero, the company later adopted the Oportun name. It serves customers in the United States through digital channels and a network of retail locations. Oportun has also offered savings-related services, including automated savings tools.

About PRA Group

PRA Group, Inc. is a global financial services company that purchases and collects portfolios of unpaid and charged-off accounts. Its clients include banks, credit card companies and other lenders seeking to manage delinquent accounts and recover outstanding balances. The company’s services include debt portfolio acquisition and account recovery, with collection approaches that may involve direct customer contact, negotiated repayment arrangements and legal processes, subject to applicable regulations.