OneMain (NYSE:OMF) versus PRA Group (NASDAQ:PRAA) Financial Review

PRA Group (NASDAQ:PRAA) and OneMain (NYSE:OMF) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PRA Group and OneMain, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PRA Group	1	2	1	1	2.40
OneMain	1	3	9	0	2.62

PRA Group presently has a consensus price target of $26.00, suggesting a potential upside of 37.78%. OneMain has a consensus price target of $67.73, suggesting a potential upside of 20.93%. Given PRA Group’s higher probable upside, research analysts plainly believe PRA Group is more favorable than OneMain.

Valuation and Earnings

This table compares PRA Group and OneMain”s gross revenue, earnings per share 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)	-2.80
OneMain	$5.12 billion	1.26	$783.00 million	$6.64	8.43

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.

Volatility & Risk

PRA Group has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, OneMain has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares PRA Group and OneMain’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%
OneMain	13.92%	23.49%	2.92%

Insider & Institutional Ownership

97.2% of PRA Group shares are owned by institutional investors. Comparatively, 85.8% of OneMain shares are owned by institutional investors. 2.2% of PRA Group shares are owned by insiders. Comparatively, 0.3% of OneMain shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

OneMain beats PRA Group on 10 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 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.