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

Institutional & Insider Ownership

85.6% of CBIZ shares are owned by institutional investors. 2.1% of PRA Group shares are owned by company insiders. Comparatively, 6.9% of CBIZ shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for PRA Group and CBIZ, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PRA Group 2 0 2 0 2.00
CBIZ 0 0 0 0 N/A

PRA Group currently has a consensus target price of $38.00, suggesting a potential upside of 43.94%. Given PRA Group’s higher probable upside, analysts clearly believe PRA Group is more favorable than CBIZ.

Profitability

This table compares PRA Group and CBIZ’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PRA Group 9.76% 4.69% 1.41%
CBIZ 5.54% 9.42% 4.22%

Volatility & Risk

PRA Group has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Valuation and Earnings

This table compares PRA Group and CBIZ’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 1.52 $280.49 million $1.64 16.10
CBIZ $831.05 million 1.05 $91.52 million $0.83 19.28

PRA Group has higher revenue, but lower earnings than CBIZ. PRA Group is trading at a lower price-to-earnings ratio than CBIZ, indicating that it is currently the more affordable of the two stocks.

Summary

PRA Group beats CBIZ on 8 of the 13 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.

CBIZ Company Profile

CBIZ, Inc. (CBIZ) is engaged in the professional services business. The Company operates its professional services business through acquiring and integrating accounting and financial service providers, group health benefits consulting firms, property and casualty brokerage firms, payroll service providers, and valuation and other service firms throughout the United States. Its segments include Financial Services, Benefits and Insurance Services, National Practices, and Corporate and Other. The Financial Services group includes accounting and tax, government healthcare consulting, financial advisory, valuation, and risk and advisory services. The Benefits and Insurance Services group includes group health benefits consulting, payroll, property and casualty, and retirement plan services. The National Practices segment includes managed networking and hardware services, and healthcare consulting.

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