PRA Group (NASDAQ:PRAA – Get Free Report) and CaliberCos (NASDAQ:CWD – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Analyst Ratings
This is a breakdown of recent recommendations for PRA Group and CaliberCos, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PRA Group | 1 | 3 | 1 | 0 | 2.00 |
| CaliberCos | 1 | 1 | 0 | 0 | 1.50 |
PRA Group presently has a consensus price target of $25.00, indicating a potential upside of 38.58%. Given PRA Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe PRA Group is more favorable than CaliberCos.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| PRA Group | -25.39% | 10.50% | 2.39% |
| CaliberCos | -108.46% | -390.11% | -22.61% |
Insider & Institutional Ownership
97.2% of PRA Group shares are owned by institutional investors. Comparatively, 4.1% of CaliberCos shares are owned by institutional investors. 2.0% of PRA Group shares are owned by insiders. Comparatively, 9.0% of CaliberCos shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares PRA Group and CaliberCos”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PRA Group | $1.21 billion | 0.57 | -$305.14 million | ($7.80) | -2.31 |
| CaliberCos | $20.10 million | 0.33 | -$21.80 million | ($10.89) | -0.09 |
CaliberCos has lower revenue, but higher earnings than PRA Group. PRA Group is trading at a lower price-to-earnings ratio than CaliberCos, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
PRA Group has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, CaliberCos has a beta of -0.29, suggesting that its stock price is 129% less volatile than the S&P 500.
Summary
PRA Group beats CaliberCos on 11 of the 14 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 CaliberCos
Caliber (NASDAQ: CWD) is a vertically integrated alternative asset management firm whose purpose is to build generational wealth for investors seeking to access opportunities in middle-market assets. Caliber differentiates itself by creating, managing, and servicing proprietary products, including middle-market investment funds, private syndications, and direct investments which are managed by our in-house asset services group. Our funds include investment vehicles focused primarily on real estate, private equity, and debt facilities. Additional information can be found at Caliberco.com and CaliberFunds.co.
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