Head to Head Analysis: PRA Group (PRAA) vs. Exponent (EXPO)

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PRA Group $830.58 million 1.89 $85.09 million $1.25 27.84
Exponent $315.08 million 6.13 $47.48 million $2.05 36.51

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

Insider and Institutional Ownership

88.6% of Exponent shares are owned by institutional investors. 2.1% of PRA Group shares are owned by company insiders. Comparatively, 2.8% of Exponent shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
PRA Group 7.57% 2.98% 0.90%
Exponent 16.46% 17.21% 11.99%

Volatility and Risk

PRA Group has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Exponent has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for PRA Group and Exponent, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PRA Group 2 2 0 0 1.50
Exponent 0 1 1 0 2.50

PRA Group currently has a consensus target price of $40.00, suggesting a potential upside of 14.94%. Exponent has a consensus target price of $79.50, suggesting a potential upside of 6.21%. Given PRA Group’s higher possible upside, equities analysts clearly believe PRA Group is more favorable than Exponent.

Dividends

Exponent pays an annual dividend of $0.84 per share and has a dividend yield of 1.1%. PRA Group does not pay a dividend. Exponent pays out 41.0% of its earnings in the form of a dividend.

Summary

Exponent beats PRA Group on 10 of the 16 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.

Exponent Company Profile

Exponent, Inc. (Exponent), along with its subsidiaries, is a science and engineering consulting company. Exponent provides engineering and scientific consulting services to clients around the world. Its service offerings are provided on a project-by-project basis. It operates in two segments: Engineering and Other Scientific, and Environmental and Health. Its Engineering and Other Scientific segment includes biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, thermal sciences and vehicle analysis services. Its Environmental and Health segment includes chemical regulation and food safety; ecological and biological sciences; environmental and earth sciences, and health sciences. Exponent serves clients in automotive, government, health, insurance, manufacturing and technology, among others.

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