PRA Group (NASDAQ:PRAA – Get Free Report) and SLM (NASDAQ:SLM – 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 analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.
Insider & Institutional Ownership
97.2% of PRA Group shares are held by institutional investors. Comparatively, 98.9% of SLM shares are held by institutional investors. 2.2% of PRA Group shares are held by insiders. Comparatively, 1.4% of SLM shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for PRA Group and SLM, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PRA Group | 1 | 2 | 1 | 1 | 2.40 |
| SLM | 1 | 6 | 5 | 0 | 2.33 |
Valuation & Earnings
This table compares PRA Group and SLM”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 | 0.59 | -$305.14 million | ($6.73) | -2.78 |
| SLM | $2.63 billion | 1.94 | $744.85 million | $3.58 | 7.59 |
SLM has higher revenue and earnings than PRA Group. PRA Group is trading at a lower price-to-earnings ratio than SLM, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PRA Group and SLM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PRA Group | -19.91% | 15.56% | 3.18% |
| SLM | 26.09% | 33.81% | 2.51% |
Risk & Volatility
PRA Group has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, SLM has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.
Summary
SLM beats PRA Group on 9 of the 15 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 SLM
SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It is also involved in the provision of retail deposit accounts, including certificates of deposit, money market accounts, and high-yield savings accounts; and interest-bearing omnibus accounts. The company was formerly known as New BLC Corporation and changed its name to SLM Corporation in December 2013. SLM Corporation was founded in 1972 and is headquartered in Newark, Delaware.
Receive News & Ratings for PRA Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PRA Group and related companies with MarketBeat.com's FREE daily email newsletter.
