PRA Group Inc (PRAA)vsRoyal Bank of Canada (RY)
PRAA
PRA Group Inc
$18.93
+0.85%
FINANCIAL SERVICES · Cap: $716.07M
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 4944% more annual revenue ($67.15B vs $1.33B). RY leads profitability with a 33.9% profit margin vs -19.9%. RY appears more attractively valued with a PEG of 2.35. PRAA earns a higher WallStSmart Score of 66/100 (B-).
PRAA
Strong Buy66
out of 100
Grade: B-
RY
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 41.2%
Conservative balance sheet, low leverage
Revenue surging 29.4% year-over-year
Earnings expanding 40.1% YoY
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
ROE of -25.4% — below average capital efficiency
Negative free cash flow — burning cash
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : PRAA
The strongest argument for PRAA centers on Price/Book, Operating Margin, Debt/Equity. Revenue growth of 29.4% demonstrates continued momentum.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.9% and operating margin at 46.4%.
Bear Case : PRAA
The primary concerns for PRAA are Market Cap, PEG Ratio, Return on Equity.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.
Key Dynamics to Monitor
PRAA profiles as a growth stock while RY is a mature play — different risk/reward profiles.
PRAA carries more volatility with a beta of 1.11 — expect wider price swings.
PRAA is growing revenue faster at 29.4% — sustainability is the question.
PRAA generates stronger free cash flow (-39M), providing more financial flexibility.
Bottom Line
PRAA scores higher overall (66/100 vs 63/100) and 29.4% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
PRA Group Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
PRA Group, Inc., a service company, is engaged in the purchase, collection and management of delinquent loan portfolios in the Americas, Australia and Europe. The company is headquartered in Norfolk, Virginia.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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