Navient Corporation (NAVI) vs PRA Group, Inc. (PRAA)

Navient Corporation and PRA Group, Inc. are both Credit Services companies. Navient Corporation is the larger, with a market value of $872.2M against $762.0M — 1.1× the size. PRA Group, Inc. grew revenue faster over the last twelve months: 17.6% against −21.4%. Navient Corporation has the higher net margin (−1.67% vs −19.9%) and the lower return on invested capital (−0.11% vs 0.86%). Across the 18 metrics below, Navient Corporation leads on 11 and PRA Group, Inc. on 7.

Valuation

Metric NAVI PRAA Credit Services median
P/E n/m n/m 9.64
P/S 0.29 0.59 0.87
P/B 0.36 0.71 1.16
Price to free cash flow 2.52 n/m 2.99
EV/EBITDA n/m 9.06 9.58
EV/Sales 12.99 3.39 2.32
Earnings yield (5.37%) (32.48%) 6.72%
Free cash flow yield 39.66% (4.81%) 12.33%

Profitability

Metric NAVI PRAA Credit Services median
Gross margin 20.06% 100.00% 77.13%
Operating margin 0.00% 5.00% 0.34%
Net margin (1.67%) (19.91%) 9.25%
Free cash flow margin 11.37% (2.84%) 13.03%
Return on equity (2.02%) (21.12%) 8.49%
Return on assets (0.10%) (4.97%) 2.29%
Return on invested capital (0.11%) 0.86% 4.09%

Growth

Metric NAVI PRAA Credit Services median
Revenue growth (TTM) (21.43%) 17.60% 4.62%
EPS growth (last fiscal year) (168.64%) (535.20%) —
Revenue growth, 5-year CAGR (3.01%) 2.44% 9.13%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NAVI PRAA Credit Services median
Debt to equity 16.73 3.47 0.68
Current ratio 10.53 1.21 1.55
Net debt to EBITDA 0.00 9.23 0.13

Dividend

Metric NAVI PRAA Credit Services median
Dividend yield 3.97% — 3.34%
Payout ratio 0.21 0.00 0.00

Size

Metric NAVI PRAA Credit Services median
Market cap 872.19m 762.00m 872.19m

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