OneMain (NYSE:OMF) and PRA Group (NASDAQ:PRAA) Financial Survey

OneMain (NYSE:OMF) and PRA Group (NASDAQ:PRAA) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

85.8% of OneMain shares are held by institutional investors. Comparatively, 97.2% of PRA Group shares are held by institutional investors. 0.3% of OneMain shares are held by insiders. Comparatively, 2.2% of PRA Group shares are held by 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.

Risk and Volatility

OneMain has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, PRA Group has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for OneMain and PRA Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneMain	1	3	9	0	2.62
PRA Group	2	2	0	0	1.50

OneMain currently has a consensus price target of $66.82, indicating a potential upside of 21.06%. Given OneMain’s stronger consensus rating and higher probable upside, analysts clearly believe OneMain is more favorable than PRA Group.

Earnings and Valuation

This table compares OneMain and PRA Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneMain	$5.21 billion	1.21	$783.00 million	$6.57	8.40
PRA Group	$1.20 billion	0.40	-$305.14 million	$4.09	3.16

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OneMain	13.43%	21.90%	2.68%
PRA Group	12.06%	14.48%	3.03%

Summary

OneMain beats PRA Group on 11 of the 14 factors compared between the two stocks.

About OneMain

OneMain Holdings, Inc. is a consumer finance company that provides personal loans to customers, including borrowers who may have limited access to traditional credit. Its offerings include secured and unsecured installment loans, which customers can apply for through its branches or digital channels. The company also offers credit-related insurance and other products designed to complement its lending services. OneMain serves customers across the United States through a nationwide branch network and online services.

About PRA Group

PRA Group, Inc. is a global financial services company that purchases and collects portfolios of unpaid and charged-off accounts. Its clients include banks, credit card companies and other lenders seeking to manage delinquent accounts and recover outstanding balances. The company’s services include debt portfolio acquisition and account recovery, with collection approaches that may involve direct customer contact, negotiated repayment arrangements and legal processes, subject to applicable regulations.