PRA Group (NASDAQ:PRAA – Get Free Report) and Bitcoin Depot (NASDAQ:BTM – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Risk & Volatility
PRA Group has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Bitcoin Depot has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.
Institutional and Insider Ownership
97.2% of PRA Group shares are owned by institutional investors. Comparatively, 9.2% of Bitcoin Depot shares are owned by institutional investors. 2.0% of PRA Group shares are owned by insiders. Comparatively, 70.2% of Bitcoin Depot shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PRA Group | 1 | 0 | 3 | 1 | 2.80 |
| Bitcoin Depot | 1 | 2 | 3 | 1 | 2.57 |
PRA Group currently has a consensus price target of $25.00, suggesting a potential upside of 52.81%. Bitcoin Depot has a consensus price target of $5.83, suggesting a potential upside of 217.03%. Given Bitcoin Depot’s higher possible upside, analysts plainly believe Bitcoin Depot is more favorable than PRA Group.
Valuation and Earnings
This table compares PRA Group and Bitcoin Depot”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PRA Group | $1.17 billion | 0.54 | $70.60 million | ($8.79) | -1.86 |
| Bitcoin Depot | $573.70 million | 0.22 | -$11.69 million | $0.23 | 8.00 |
PRA Group has higher revenue and earnings than Bitcoin Depot. PRA Group is trading at a lower price-to-earnings ratio than Bitcoin Depot, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PRA Group and Bitcoin Depot’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PRA Group | 8.10% | 6.52% | 1.64% |
| Bitcoin Depot | 1.44% | 791.02% | 9.06% |
Summary
PRA Group beats Bitcoin Depot on 7 of the 13 factors compared between the two stocks.
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.
About Bitcoin Depot
Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.
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