OneMain (NYSE:OMF – Get Free Report) and PRA Group (NASDAQ:PRAA – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Institutional and Insider Ownership
85.8% of OneMain shares are held by institutional investors. Comparatively, 97.2% of PRA Group shares are held by institutional investors. 0.3% of OneMain shares are held by company insiders. Comparatively, 2.2% of PRA Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares OneMain and PRA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OneMain | 13.92% | 23.49% | 2.92% |
| PRA Group | -19.91% | 15.56% | 3.18% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OneMain | $5.46 billion | 1.21 | $783.00 million | $6.64 | 8.65 |
| PRA Group | $1.20 billion | 0.65 | -$305.14 million | ($6.73) | -3.07 |
OneMain has higher revenue and earnings than PRA Group. PRA Group is trading at a lower price-to-earnings ratio than OneMain, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for OneMain and PRA Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OneMain | 1 | 3 | 8 | 0 | 2.58 |
| PRA Group | 1 | 2 | 1 | 1 | 2.40 |
OneMain currently has a consensus price target of $68.40, indicating a potential upside of 19.11%. PRA Group has a consensus price target of $26.00, indicating a potential upside of 25.91%. Given PRA Group’s higher possible upside, analysts plainly believe PRA Group is more favorable than OneMain.
Risk and Volatility
OneMain has a beta of 1.22, suggesting that its share price is 22% 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
OneMain beats PRA Group on 10 of the 15 factors compared between the two stocks.
About OneMain
OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses in the United States. It originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It sells its products through its website. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1912 and is based in Evansville, Indiana.
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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