Galaxy Digital (NASDAQ:GLXY – Get Free Report) and PRA Group (NASDAQ:PRAA – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Insider and Institutional Ownership
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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Galaxy Digital and PRA Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Galaxy Digital | $61.36 billion | 0.11 | -$241.35 million | $0.12 | 147.00 |
| PRA Group | $1.20 billion | 0.57 | -$305.14 million | ($7.80) | -2.28 |
Galaxy Digital has higher revenue and earnings than PRA Group. PRA Group is trading at a lower price-to-earnings ratio than Galaxy Digital, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Galaxy Digital and PRA Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Galaxy Digital | 1 | 2 | 11 | 1 | 2.80 |
| PRA Group | 1 | 3 | 1 | 0 | 2.00 |
Galaxy Digital currently has a consensus price target of $42.77, suggesting a potential upside of 142.46%. PRA Group has a consensus price target of $25.00, suggesting a potential upside of 40.61%. Given Galaxy Digital’s stronger consensus rating and higher possible upside, research analysts clearly believe Galaxy Digital is more favorable than PRA Group.
Profitability
This table compares Galaxy Digital and PRA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Galaxy Digital | N/A | 1.15% | 0.32% |
| PRA Group | -25.39% | 10.50% | 2.39% |
Summary
Galaxy Digital beats PRA Group on 9 of the 14 factors compared between the two stocks.
About Galaxy Digital
Galaxy Digital Holdings Ltd. is a financial services and an investment management company, which engages in the digital asset, cryptocurrency, and block chain technology sectors. It operates through the following segments: Trading, Principal Investment, Asset Management, Investment Banking, Mining, and Corporate & Other. The Trading segment manages positions in cryptocurrency and other liquid digital assets contributed to the business at the outset and continues to invest and trade in those and related assets. The Principal Investment segment includes portfolio of private principal investments across the block chain ecosystem, including early- and later-stage equity, pre-launch network contributions, and other structured alternative investments. The Asset Management segment manages capital on behalf of third parties in exchange for management fees and performance-based compensation. The Investment Banking segment offers the spectrum of investment banking, including, but not limited to general corporate advisory, mergers and acquisition, transaction advisory, restructuring and capital rising. The Mining segment focuses to provide financial services for North American miners, through its partnerships. The Corporate & Other consists of the partnership’s unallocated corporate overhead and other unallocated costs not identifiable to any of the reportable segments. The company was founded by Michael Edward Novogratz on February 10, 2006 and is headquartered in New York, NY.
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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