Comparing PRA Group (NASDAQ:PRAA) and Credit Saison (OTCMKTS:CSASF)

Credit Saison (OTCMKTS:CSASF) and PRA Group (NASDAQ:PRAA) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Credit Saison	N/A	N/A	N/A
PRA Group	-19.91%	15.56%	3.18%

Analyst Recommendations

This is a breakdown of current ratings for Credit Saison and PRA Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credit Saison	0	0	0	0	0.00
PRA Group	1	2	1	1	2.40

PRA Group has a consensus target price of $26.00, indicating a potential upside of 32.79%. Given PRA Group’s stronger consensus rating and higher possible upside, analysts clearly believe PRA Group is more favorable than Credit Saison.

Institutional & Insider Ownership

26.3% of Credit Saison shares are held by institutional investors. Comparatively, 97.2% of PRA Group shares are held by institutional investors. 2.2% of PRA Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Credit Saison and PRA Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credit Saison	N/A	N/A	N/A	C$144.02	0.16
PRA Group	$1.34 billion	0.55	-$305.14 million	($6.73)	-2.91

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

Summary

PRA Group beats Credit Saison on 9 of the 12 factors compared between the two stocks.

About Credit Saison

Credit Saison Co., Ltd. provides leasing, finance, real estate, entertainment, and payment services in Japan and internationally. The company offers credit cards, prepaid and debit cards, smartphone-based services, and information processing services; internet advertisement agency; marketing consulting; temporary staffing; and contracting services. It also engages in the credit guarantee and finance related businesses; real estate business; real estate leasing activities; and digital marketing and asset management services, as well as develops and manages amusement. Further, it involved in the import and sell of lifestyle goods; cleaning, security, and property maintenance services; debt collection; personal loan; life/non-life insurance agency; online ticket system and payment services; digital lending; and sells information security and office disaster prevention related services, etc. The company was formerly known as Seibu Credit Co., Ltd. and changed its name to Credit Saison Co., Ltd. in October 1989. Credit Saison Co., Ltd. was incorporated in 1951 and is headquartered in Tokyo, Japan.

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.