PRA Group (NASDAQ:PRAA – Get Free Report) and Coinbase Global (NASDAQ:COIN – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
Insider and Institutional Ownership
97.2% of PRA Group shares are held by institutional investors. Comparatively, 68.8% of Coinbase Global shares are held by institutional investors. 2.0% of PRA Group shares are held by company insiders. Comparatively, 16.7% of Coinbase Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
PRA Group has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Coinbase Global has a beta of 3.38, meaning that its stock price is 238% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PRA Group | 1 | 3 | 1 | 0 | 2.00 |
| Coinbase Global | 4 | 10 | 19 | 0 | 2.45 |
PRA Group presently has a consensus price target of $25.00, suggesting a potential upside of 67.90%. Coinbase Global has a consensus price target of $252.20, suggesting a potential upside of 35.39%. Given PRA Group’s higher possible upside, research analysts clearly believe PRA Group is more favorable than Coinbase Global.
Profitability
This table compares PRA Group and Coinbase Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PRA Group | -22.51% | 13.19% | 2.85% |
| Coinbase Global | 12.20% | 4.06% | 2.05% |
Valuation & Earnings
This table compares PRA Group and Coinbase Global”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PRA Group | $1.20 billion | 0.47 | -$305.14 million | ($7.16) | -2.08 |
| Coinbase Global | $7.18 billion | 6.83 | $1.26 billion | $2.66 | 70.03 |
Coinbase Global has higher revenue and earnings than PRA Group. PRA Group is trading at a lower price-to-earnings ratio than Coinbase Global, indicating that it is currently the more affordable of the two stocks.
Summary
Coinbase Global beats PRA Group on 10 of the 14 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 Coinbase Global
Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.
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