PRA Group, Inc. (PRAA) vs World Acceptance Corporation (WRLD)

PRA Group, Inc. and World Acceptance Corporation are both Credit Services companies. PRA Group, Inc. and World Acceptance Corporation are of similar size ($796.2M and $762.0M). PRA Group, Inc. has negative trailing earnings, so its P/E is not meaningful; World Acceptance Corporation trades at 20.3×. PRA Group, Inc. grew revenue faster over the last twelve months: 17.6% against 4.26%. World Acceptance Corporation has the higher net margin (6.61% vs −19.9%) and the higher return on invested capital (3.97% vs 0.86%). Across the 19 metrics below, World Acceptance Corporation leads on 13 and PRA Group, Inc. on 6.

Valuation

Metric PRAA WRLD Credit Services median
P/E n/m 20.33 9.64
P/S 0.59 1.31 0.87
P/B 0.71 2.13 1.16
Price to free cash flow n/m 2.99 2.99
EV/EBITDA 9.06 9.47 9.58
EV/Sales 3.39 2.05 2.32
Earnings yield (32.48%) 4.92% 6.72%
Free cash flow yield (4.81%) 33.43% 12.33%

Profitability

Metric PRAA WRLD Credit Services median
Gross margin 100.00% 100.00% 77.13%
Operating margin 5.00% 17.26% 0.34%
Net margin (19.91%) 6.61% 9.25%
Free cash flow margin (2.84%) 44.29% 13.03%
Return on equity (21.12%) 9.90% 8.49%
Return on assets (4.97%) 3.72% 2.29%
Return on invested capital 0.86% 3.97% 4.09%

Growth

Metric PRAA WRLD Credit Services median
Revenue growth (TTM) 17.60% 4.26% 4.62%
EPS growth (last fiscal year) (535.20%) (57.24%) —
Revenue growth, 5-year CAGR 2.44% 2.08% 9.13%
Net income growth, 5-year CAGR 0.00% (17.09%) 0.00%

Health

Metric PRAA WRLD Credit Services median
Debt to equity 3.47 1.29 0.68
Current ratio 1.21 13.49 1.55
Net debt to EBITDA 9.23 3.46 0.13

Dividend

Metric PRAA WRLD Credit Services median
Dividend yield — — 3.34%
Payout ratio 0.00 0.00 0.00

Size

Metric PRAA WRLD Credit Services median
Market cap 762.00m 796.24m 872.19m

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