Argo Blockchain (NASDAQ:ARBK – Get Free Report) and PRA Group (NASDAQ:PRAA – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
Volatility and Risk
Argo Blockchain has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, PRA Group has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.
Insider and Institutional Ownership
2.4% of Argo Blockchain shares are held by institutional investors. Comparatively, 97.2% of PRA Group shares are held by institutional investors. 2.0% of PRA Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Argo Blockchain | $47.02 million | 0.02 | -$55.10 million | ($210.87) | -0.01 |
| PRA Group | $1.11 billion | 0.38 | $70.60 million | ($8.79) | -1.23 |
PRA Group has higher revenue and earnings than Argo Blockchain. PRA Group is trading at a lower price-to-earnings ratio than Argo Blockchain, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Argo Blockchain and PRA Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Argo Blockchain | 1 | 1 | 0 | 0 | 1.50 |
| PRA Group | 1 | 3 | 1 | 0 | 2.00 |
PRA Group has a consensus price target of $25.00, indicating a potential upside of 131.91%. Given PRA Group’s stronger consensus rating and higher probable upside, analysts plainly believe PRA Group is more favorable than Argo Blockchain.
Profitability
This table compares Argo Blockchain and PRA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Argo Blockchain | N/A | N/A | N/A |
| PRA Group | -29.55% | 7.03% | 1.66% |
Summary
PRA Group beats Argo Blockchain on 11 of the 14 factors compared between the two stocks.
About Argo Blockchain
Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.
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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