Critical Comparison: Sentage (NASDAQ:SNTG) versus PRA Group (NASDAQ:PRAA)

PRA Group (NASDAQ:PRAA) and Sentage (NASDAQ:SNTG) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PRA Group	$1.11 billion	0.56	$70.60 million	($8.79)	-1.81
Sentage	$110,000.00	57.99	-$2.01 million	N/A	N/A

PRA Group has higher revenue and earnings than Sentage.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PRA Group and Sentage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PRA Group	1	1	3	0	2.40
Sentage	1	0	0	0	1.00

PRA Group presently has a consensus target price of $25.00, indicating a potential upside of 57.13%. Given PRA Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe PRA Group is more favorable than Sentage.

Risk & Volatility

PRA Group has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Sentage has a beta of 2.54, suggesting that its share price is 154% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PRA Group	-29.55%	7.03%	1.66%
Sentage	N/A	N/A	N/A

Institutional and Insider Ownership

97.2% of PRA Group shares are owned by institutional investors. Comparatively, 0.1% of Sentage shares are owned by institutional investors. 2.0% of PRA Group shares are owned by insiders. Comparatively, 62.4% of Sentage shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

PRA Group beats Sentage on 8 of the 12 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 Sentage

Sentage Holdings Inc. provides a range of financial services. The company offers consumer loan repayment and collection management, loan recommendation, and prepaid payment network services in China. It also provides consultancy and information technology support services. Sentage Holdings Inc. was incorporated in 2019 and is headquartered in Shanghai, the People's Republic of China.