Comprehensive Stock Comparison
Compare LM Funding America, Inc. (LMFA) vs PRA Group, Inc. (PRAA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | LMFA | 77.7% revenue growth vs PRAA's 37.8% |
| Quality / Margins | PRAA | 6.3% net margin vs LMFA's -66.5% |
| Stability / Safety | PRAA | Beta 1.52 vs LMFA's 1.82 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | PRAA | -24.7% vs LMFA's -75.2% |
| Efficiency (ROA) | PRAA | -6.9% ROA vs LMFA's -12.3%, ROIC 5.0% vs -12.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
LM Funding America is a specialty finance company that purchases delinquent homeowner association assessment accounts from community associations. It generates revenue primarily by collecting on these purchased delinquent accounts — typically through payment plans or legal action — and earns interest and fees on the amounts recovered. The company's key advantage lies in its specialized expertise in HOA collections and its New Neighbor Guaranty program, which provides associations with upfront payments for delinquent accounts.
PRA Group is a debt collection company that purchases and collects on defaulted consumer loans — primarily credit card debt, installment loans, and auto loans — from banks and other lenders. It makes money by buying these nonperforming loan portfolios at deep discounts — often pennies on the dollar — and then collecting more than it paid through persistent recovery efforts. The company's competitive advantage lies in its sophisticated data analytics and collection technology, which allows it to efficiently price and recover debt that others might overlook.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
PRAA leads in 5 of 6 categories (Financial Metrics, Profitability & Efficiency). LMFA leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
PRAA is the larger business by revenue, generating $1.1B annually — 102.2x LMFA's $11M. PRAA is the more profitable business, keeping 6.3% of every revenue dollar as net income compared to LMFA's -66.5%.
| Metric | LMFALM Funding Americ… | PRAAPRA Group, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $11M | $1.1B |
| EBITDAEarnings before interest/tax | -$264,638 | -$50M |
| Net IncomeAfter-tax profit | -$7M | -$343M |
| Free Cash FlowCash after capex | -$14M | -$37M |
| Gross MarginGross profit ÷ Revenue | +36.4% | +61.0% |
| Operating MarginEBIT ÷ Revenue | -58.7% | +30.2% |
| Net MarginNet income ÷ Revenue | -66.5% | +6.3% |
| FCF MarginFCF ÷ Revenue | -124.4% | -8.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +100.0% | -16.1% |
Valuation Metrics
On an enterprise value basis, LMFA's 7.7x EV/EBITDA is more attractive than PRAA's 11.0x.
| Metric | LMFALM Funding Americ… | PRAAPRA Group, Inc. |
|---|---|---|
| Market CapShares × price | $6M | $616M |
| Enterprise ValueMkt cap + debt − cash | $10M | $3.9B |
| Trailing P/EPrice ÷ TTM EPS | -0.14x | 8.80x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 6.92x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 7.70x | 11.05x |
| Price / SalesMarket cap ÷ Revenue | 0.53x | 0.55x |
| Price / BookPrice ÷ Book value/share | 0.03x | 0.52x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
LMFA delivers a -15.3% return on equity — every $100 of shareholder capital generates $-15 in annual profit, vs $-35 for PRAA. LMFA carries lower financial leverage with a 0.22x debt-to-equity ratio, signaling a more conservative balance sheet compared to PRAA's 2.82x. On the Piotroski fundamental quality scale (0–9), PRAA scores 5/9 vs LMFA's 3/9, reflecting solid financial health.
| Metric | LMFALM Funding Americ… | PRAAPRA Group, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -15.3% | -34.9% |
| ROA (TTM)Return on assets | -12.3% | -6.9% |
| ROICReturn on invested capital | -12.3% | +5.0% |
| ROCEReturn on capital employed | -16.4% | +7.7% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 5 |
| Debt / EquityFinancial leverage | 0.22x | 2.82x |
| Net DebtTotal debt minus cash | $4M | $3.3B |
| Cash & Equiv.Liquid assets | $3M | $106M |
| Total DebtShort + long-term debt | $8M | $3.4B |
| Interest CoverageEBIT ÷ Interest expense | -3.92x | -1.78x |
Total Returns (with DRIP)
A $10,000 investment in PRAA five years ago would be worth $4,293 today (with dividends reinvested), compared to $78 for LMFA. Over the past 12 months, PRAA leads with a -24.7% total return vs LMFA's -75.2%. The 3-year compound annual growth rate (CAGR) favors PRAA at -28.2% vs LMFA's -63.8% — a key indicator of consistent wealth creation.
| Metric | LMFALM Funding Americ… | PRAAPRA Group, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -22.8% | -9.9% |
| 1-Year ReturnPast 12 months | -75.2% | -24.7% |
| 3-Year ReturnCumulative with dividends | -95.3% | -63.0% |
| 5-Year ReturnCumulative with dividends | -99.2% | -57.1% |
| 10-Year ReturnCumulative with dividends | +20.2% | -35.5% |
| CAGR (3Y)Annualised 3-year return | -63.8% | -28.2% |
Risk & Volatility
PRAA is the less volatile stock with a 1.52 beta — it tends to amplify market swings less than LMFA's 1.82 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PRAA currently trades 71.6% from its 52-week high vs LMFA's 7.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LMFALM Funding Americ… | PRAAPRA Group, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.82x | 1.52x |
| 52-Week HighHighest price in past year | $5.14 | $22.01 |
| 52-Week LowLowest price in past year | $0.29 | $10.25 |
| % of 52W HighCurrent price vs 52-week peak | +7.3% | +71.6% |
| RSI (14)Momentum oscillator 0–100 | 50.0 | 51.4 |
| Avg Volume (50D)Average daily shares traded | 372K | 338K |
Analyst Outlook
| Metric | LMFALM Funding Americ… | PRAAPRA Group, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Hold |
| Price TargetConsensus 12-month target | — | $26.00 |
| # AnalystsCovering analysts | — | 13 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | 2 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | 100 | 1.41 | -98.6% |
| PRA Group, Inc. (PRAA) | 100 | 33.39 | -66.6% |
PRA Group, Inc. (PRAA) returned -57% over 5 years vs LM Funding America,… (LMFA)'s -99%.
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | $7M | $11M | +58.0% |
| PRA Group, Inc. (PRAA) | $942M | $1.1B | +19.3% |
LM Funding America, Inc.'s revenue grew from $7M (2015) to $11M (2024) — a 5.2% CAGR. PRA Group, Inc.'s revenue grew from $942M (2015) to $1.1B (2024) — a 2.0% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | 24.9% | -66.5% | -367.3% |
| PRA Group, Inc. (PRAA) | 17.8% | 6.3% | -64.8% |
LM Funding America, Inc.'s net margin went from 25% (2015) to -67% (2024). PRA Group, Inc.'s net margin went from 18% (2015) to 6% (2024).
Chart 4P/E Ratio History — 7 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| PRA Group, Inc. (PRAA) | 9.4 | 11.7 | +24.5% |
PRA Group, Inc. has traded in a 9x–19x P/E range over 7 years; current trailing P/E is ~9x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | -0.5 | -2.61 | -422.0% |
| PRA Group, Inc. (PRAA) | 3.47 | 1.79 | -48.4% |
LM Funding America, Inc.'s EPS grew from $-0.50 (2015) to $-2.61 (2024). PRA Group, Inc.'s EPS grew from $3.47 (2015) to $1.79 (2024) — a -7% CAGR.
Chart 6Free Cash Flow — 5 Years
LM Funding America, Inc. generated $-14M FCF in 2024 (+7% vs 2021). PRA Group, Inc. generated $-99M FCF in 2024 (-234% vs 2021).
LMFA vs PRAA: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is LMFA or PRAA a better buy right now?
PRA Group, Inc. (PRAA) offers the better valuation at 8.8x trailing P/E (6.9x forward), making it the more compelling value choice. Analysts rate PRA Group, Inc. (PRAA) a "Hold" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — LMFA or PRAA?
Over the past 5 years, PRA Group, Inc. (PRAA) delivered a total return of -57.1%, compared to -99.2% for LM Funding America, Inc. (LMFA). A $10,000 investment in PRAA five years ago would be worth approximately $4K today (assuming dividends reinvested). Over 10 years, the gap is even starker: LMFA returned +20.2% versus PRAA's -35.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — LMFA or PRAA?
By beta (market sensitivity over 5 years), PRA Group, Inc. (PRAA) is the lower-risk stock at 1.52β versus LM Funding America, Inc.'s 1.82β — meaning LMFA is approximately 20% more volatile than PRAA relative to the S&P 500. On balance sheet safety, LM Funding America, Inc. (LMFA) carries a lower debt/equity ratio of 22% versus 3% for PRA Group, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — LMFA or PRAA?
PRA Group, Inc. (PRAA) is the more profitable company, earning 6.3% net margin versus -66.5% for LM Funding America, Inc. — meaning it keeps 6.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PRAA leads at 30.2% versus -58.7% for LMFA. At the gross margin level — before operating expenses — PRAA leads at 61.0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Which pays a better dividend — LMFA or PRAA?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
06Is LMFA or PRAA better for a retirement portfolio?
For long-horizon retirement investors, PRA Group, Inc. (PRAA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. LM Funding America, Inc. (LMFA) carries a higher beta of 1.82 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (PRAA: -35.5%, LMFA: +20.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
07What are the main differences between LMFA and PRAA?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: LMFA is a small-cap quality compounder stock; PRAA is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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