Head-To-Head Comparison: PRA Group (PRAA) vs. Brady Corporation (BRC)

PRA Group (NASDAQ: PRAA) and Brady Corporation (NYSE:BRC) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitabiliy and earnings.

Dividends

Brady Corporation pays an annual dividend of $0.82 per share and has a dividend yield of 2.5%. PRA Group does not pay a dividend. Brady Corporation pays out 44.3% of its earnings in the form of a dividend. Brady Corporation has raised its dividend for 31 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
PRA Group 9.76% 4.69% 1.41%
Brady Corporation 8.64% 14.44% 8.84%

Analyst Recommendations

This is a summary of recent recommendations and price targets for PRA Group and Brady Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PRA Group 0 0 3 0 3.00
Brady Corporation 0 2 1 0 2.33

PRA Group currently has a consensus target price of $38.00, suggesting a potential upside of 14.46%. Brady Corporation has a consensus target price of $37.67, suggesting a potential upside of 16.98%. Given Brady Corporation’s higher possible upside, analysts plainly believe Brady Corporation is more favorable than PRA Group.

Risk & Volatility

PRA Group has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Brady Corporation has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Insider & Institutional Ownership

75.6% of Brady Corporation shares are owned by institutional investors. 2.1% of PRA Group shares are owned by insiders. Comparatively, 15.6% of Brady Corporation 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.

Valuation and Earnings

This table compares PRA Group and Brady Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PRA Group $784.13 million 1.97 $278.56 million $1.64 20.24
Brady Corporation $1.11 billion 1.49 $156.45 million $1.85 17.41

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

Summary

Brady Corporation beats PRA Group on 9 of the 17 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.

Brady Corporation Company Profile

Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company has two segments: Identification Solutions (IDS) and Workplace Safety (WPS). The IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The IDS segment offers products that are manufactured under various brands, including the Brady brand, and are primarily sold through distribution to a range of maintenance, repair and operations (MRO) and original equipment manufacturing (OEM) customers, and through other channels. The WPS segment offers a range of product categories, such as safety and compliance signs, tags, and labels; informational and architectural signage; industrial warehouse and office equipment, and labor law compliance posters. Its brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco.

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