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 dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Analyst Recommendations
This is a breakdown of current ratings and target prices for OneMain and PRA Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OneMain | 1 | 3 | 9 | 0 | 2.62 |
| PRA Group | 1 | 3 | 0 | 0 | 1.75 |
OneMain presently has a consensus target price of $66.82, indicating a potential upside of 15.71%. Given OneMain’s stronger consensus rating and higher possible upside, analysts plainly believe OneMain is more favorable than PRA Group.
Valuation & Earnings
This table compares OneMain and PRA Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OneMain | $5.46 billion | 1.21 | $783.00 million | $6.57 | 8.79 |
| PRA Group | $1.20 billion | 0.63 | -$305.14 million | ($6.73) | -2.97 |
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.
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 insiders. Comparatively, 2.2% of PRA Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
OneMain has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, PRA Group has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
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 | 13.43% | 21.97% | 2.69% |
| PRA Group | -19.91% | 15.56% | 3.18% |
Summary
OneMain beats PRA Group on 11 of the 14 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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