Oportun Financial (NASDAQ:OPRT – Get Free Report) and PRA Group (NASDAQ:PRAA – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.
Profitability
This table compares Oportun Financial and PRA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oportun Financial | 2.05% | 13.55% | 1.65% |
| PRA Group | -19.91% | 15.86% | 3.20% |
Insider and Institutional Ownership
82.7% of Oportun Financial shares are owned by institutional investors. Comparatively, 97.2% of PRA Group shares are owned by institutional investors. 1.6% of Oportun Financial shares are owned by company insiders. Comparatively, 2.2% of PRA Group shares are owned 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.
Volatility and Risk
Analyst Ratings
This is a breakdown of recent ratings for Oportun Financial and PRA Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oportun Financial | 1 | 2 | 2 | 0 | 2.20 |
| PRA Group | 1 | 3 | 1 | 0 | 2.00 |
Oportun Financial currently has a consensus price target of $7.33, suggesting a potential downside of 9.35%. PRA Group has a consensus price target of $26.00, suggesting a potential upside of 31.38%. Given PRA Group’s higher possible upside, analysts plainly believe PRA Group is more favorable than Oportun Financial.
Earnings and Valuation
This table compares Oportun Financial 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 | |
| Oportun Financial | $395.98 million | 0.94 | $25.25 million | $0.40 | 20.22 |
| PRA Group | $1.20 billion | 0.63 | -$305.14 million | ($7.16) | -2.76 |
Oportun Financial has higher earnings, but lower revenue than PRA Group. PRA Group is trading at a lower price-to-earnings ratio than Oportun Financial, indicating that it is currently the more affordable of the two stocks.
Summary
Oportun Financial beats PRA Group on 8 of the 14 factors compared between the two stocks.
About Oportun Financial
Oportun Financial Corporation provides financial services. The company offers personal loans and credit cards. It serves customers through online and over the phone, as well as through retail and Lending as a Service partner locations. The company was founded in 2005 and is headquartered in San Carlos, California.
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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