FirstCash (NYSE: FCFS) and EZCORP (NASDAQ:EZPW) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Institutional & Insider Ownership
94.7% of FirstCash shares are held by institutional investors. Comparatively, 93.1% of EZCORP shares are held by institutional investors. 2.8% of FirstCash shares are held by insiders. Comparatively, 2.1% of EZCORP shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for FirstCash and EZCORP, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FirstCash currently has a consensus price target of $69.80, suggesting a potential downside of 3.26%. EZCORP has a consensus price target of $13.00, suggesting a potential downside of 0.38%. Given EZCORP’s higher possible upside, analysts clearly believe EZCORP is more favorable than FirstCash.
FirstCash pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. EZCORP does not pay a dividend. FirstCash pays out 29.2% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares FirstCash and EZCORP’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FirstCash||$1.78 billion||1.91||$143.89 million||$3.01||23.97|
|EZCORP||$747.95 million||0.95||$31.85 million||$0.69||18.91|
FirstCash has higher revenue and earnings than EZCORP. EZCORP is trading at a lower price-to-earnings ratio than FirstCash, indicating that it is currently the more affordable of the two stocks.
This table compares FirstCash and EZCORP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
FirstCash has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, EZCORP has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.
FirstCash beats EZCORP on 13 of the 16 factors compared between the two stocks.
FirstCash, Inc., formerly First Cash Financial Services, Inc., is an operator of retail-based pawn stores in the United States and Latin America. The Company’s primary business is the operation of full-service pawn stores, which make small pawn loans secured by personal property, such as consumer electronics, jewelry, power tools, household appliances, sporting goods and musical instruments. The Company’s operates through two segments: the U.S. operations segment and the Latin America operations segment. The U.S. operations segment consists of all pawn and consumer loan operations in the United States and the Latin America operations segment consists of all pawn and consumer loan operations in Latin America, which includes operations in Mexico, Guatemala and El Salvador. In addition, some of the Company’s pawn stores offer small unsecured consumer loans or credit services products. The Company also operates consumer finance stores in Texas and Mexico.
EZCORP, Inc. provides pawn loans in the United States and Mexico, and consumer loans in Mexico. The Company operates through three segments: U.S. Pawn, which includes its EZPAWN, Value Pawn & Jewelry and other branded pawn operations in the United States; Mexico Pawn, which includes its Empeno Facil pawn operations and cash converters buy/sell store operations in Mexico, and Other International, which includes its CASHMAX financial services operations in Canada and its equity interest in Cash Converters International. It offers pawn loans, which are non-recourse loans, collateralized by tangible property, and it sells merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers at its pawn stores.
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