PRA Group (NASDAQ: PRAA) and Ituran Location and Control (NASDAQ:ITRN) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.
Ituran Location and Control pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. PRA Group does not pay a dividend. Ituran Location and Control pays out 49.2% of its earnings in the form of a dividend.
Risk & Volatility
PRA Group has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Ituran Location and Control has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.
Valuation & Earnings
This table compares PRA Group and Ituran Location and Control’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PRA Group||$784.13 million||1.69||$280.49 million||$1.64||17.90|
|Ituran Location and Control||$218.77 million||3.26||$65.10 million||$1.95||17.44|
PRA Group has higher revenue and earnings than Ituran Location and Control. Ituran Location and Control is trading at a lower price-to-earnings ratio than PRA Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
51.8% of Ituran Location and Control shares are owned by institutional investors. 2.1% of PRA Group shares are owned 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.
This table compares PRA Group and Ituran Location and Control’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ituran Location and Control||18.67%||36.12%||22.00%|
This is a breakdown of current ratings for PRA Group and Ituran Location and Control, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ituran Location and Control||0||0||1||0||3.00|
PRA Group currently has a consensus price target of $38.00, indicating a potential upside of 29.47%. Ituran Location and Control has a consensus price target of $31.00, indicating a potential downside of 8.82%. Given PRA Group’s higher probable upside, equities analysts clearly believe PRA Group is more favorable than Ituran Location and Control.
PRA Group beats Ituran Location and Control on 8 of the 15 factors compared between the two stocks.
PRA Group Company Profile
PRA Group, Inc. (PRA Group) is a financial and business services company with operations in the Americas and Europe. The Company’s primary business is the purchase, collection and management of portfolios of nonperforming loans. The Company operates through the account receivables management segment. It also provides fee-based services, such as vehicle location, skip tracing and collateral recovery for auto lenders, government entities and law enforcement; revenue administration, audit and revenue discovery/recovery services for local government entities; class action claims recovery services and purchases; servicing of consumer bankruptcy accounts in the United States, and contingent collections of nonperforming loans in Europe and South America. The Company’s portfolio of nonperforming loans includes a set of accounts that can be categorized by asset type, age and size of account, level of previous collection efforts, payment history, and geography.
Ituran Location and Control Company Profile
Ituran Location and Control Ltd. is a provider of location-based services, consisting of stolen vehicle recovery (SVR), fleet management services and other tracking services. The Company also provides wireless communication products used in connection with its location-based services and various other applications. Its operations consist of two segments: location-based services and wireless communications products. Its location-based services segment consists of its SVR and tracking services, fleet management and value-added services consisted of personal locater services and concierge services. Its wireless communications products segment consists of short and medium range two-way machine-to-machine wireless communications products that are used for various applications, including automatic vehicle location (AVL) and automatic vehicle identification. It primarily provides its services, as well as sells and leases its products in Israel, Brazil, Argentina and the United States.
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