Information Services Group (III) & Pra Group (PRAA) Financial Survey

Information Services Group (NASDAQ: III) and Pra Group (NASDAQ:PRAA) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Information Services Group and Pra Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Information Services Group 0 0 2 0 3.00
Pra Group 2 3 0 0 1.60

Information Services Group currently has a consensus target price of $6.50, indicating a potential upside of 53.30%. Pra Group has a consensus target price of $40.00, indicating a potential upside of 9.29%. Given Information Services Group’s stronger consensus rating and higher possible upside, analysts plainly believe Information Services Group is more favorable than Pra Group.

Valuation & Earnings

This table compares Information Services Group and Pra Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Information Services Group $216.50 million 0.85 -$6.50 million ($0.21) -20.19
Pra Group $830.58 million 1.99 $85.09 million $1.24 29.52

Pra Group has higher revenue and earnings than Information Services Group. Information Services Group is trading at a lower price-to-earnings ratio than Pra Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Information Services Group and Pra Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Information Services Group -2.97% -4.66% -1.21%
Pra Group 7.57% 2.98% 0.90%

Institutional & Insider Ownership

41.9% of Information Services Group shares are held by institutional investors. 12.0% of Information Services Group shares are held by company insiders. Comparatively, 2.1% of Pra Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Information Services Group has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Pra Group has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500.

Summary

Pra Group beats Information Services Group on 9 of the 14 factors compared between the two stocks.

Information Services Group Company Profile

Information Services Group, Inc. is a technology insights, market intelligence and advisory services company. The Company operates in the segment of fact-based sourcing advisory services. It supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services with a focus on information technology, business process transformation, program management services and enterprise resource planning. It offers service lines, including research, consulting, managed services, network carrier services, robotic process automation (RPA), outsourcing advisory and provider services. It specializes in digital transformation services, including automation, cloud and data analytics; managed governance and risk services; network carrier services; technology strategy and operations design; change management, and technology research and analysis.

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.

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