FirstCash (NYSE:FCFS) versus The Competition Head to Head Review

FirstCash (NYSE: FCFS) is one of 20 public companies in the “Consumer Lending” industry, but how does it compare to its competitors? We will compare FirstCash to related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.

Institutional and Insider Ownership

95.7% of FirstCash shares are held by institutional investors. Comparatively, 78.9% of shares of all “Consumer Lending” companies are held by institutional investors. 2.8% of FirstCash shares are held by insiders. Comparatively, 5.3% of shares of all “Consumer Lending” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

FirstCash has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, FirstCash’s competitors have a beta of 1.24, indicating that their average stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for FirstCash and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstCash 0 2 5 0 2.71
FirstCash Competitors 153 601 991 51 2.52

FirstCash currently has a consensus target price of $64.00, indicating a potential downside of 5.11%. As a group, “Consumer Lending” companies have a potential upside of 25.82%. Given FirstCash’s competitors higher possible upside, analysts plainly believe FirstCash has less favorable growth aspects than its competitors.

Dividends

FirstCash pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. FirstCash pays out 34.2% of its earnings in the form of a dividend. As a group, “Consumer Lending” companies pay a dividend yield of 1.6% and pay out 27.3% of their earnings in the form of a dividend. FirstCash lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares FirstCash and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstCash 6.41% 8.45% 5.91%
FirstCash Competitors -161.46% -105.70% -2.54%

Valuation & Earnings

This table compares FirstCash and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FirstCash $1.09 billion $60.12 million 28.82
FirstCash Competitors $3.11 billion $462.29 million 5.40

FirstCash’s competitors have higher revenue and earnings than FirstCash. FirstCash is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

FirstCash competitors beat FirstCash on 8 of the 15 factors compared.

FirstCash Company Profile

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.

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