FirstCash (NASDAQ: FCFS) and EZCORP (NASDAQ:EZPW) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Dividends

FirstCash pays an annual dividend of $0.50 per share and has a dividend yield of 0.8%. EZCORP does not pay a dividend. FirstCash pays out 25.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for FirstCash and EZCORP, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstCash 0 2 5 0 2.71
EZCORP 0 3 1 0 2.25

FirstCash currently has a consensus price target of $63.33, suggesting a potential upside of 3.32%. EZCORP has a consensus price target of $10.00, suggesting a potential upside of 1.01%. Given FirstCash’s stronger consensus rating and higher possible upside, equities research analysts plainly believe FirstCash is more favorable than EZCORP.

Insider and Institutional Ownership

89.4% of EZCORP shares are held by institutional investors. 2.1% of EZCORP shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

FirstCash has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, EZCORP has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500.

Valuation and Earnings

This table compares FirstCash and EZCORP’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FirstCash $1.59 billion 1.84 $249.94 million $1.97 31.12
EZCORP $750.47 million 0.72 $67.71 million $0.44 22.50

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.

Profitability

This table compares FirstCash and EZCORP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstCash 3.66% 4.10% 2.95%
EZCORP 3.16% 3.65% 2.29%

Summary

FirstCash beats EZCORP on 11 of the 16 factors compared between the two stocks.

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.

EZCORP Company Profile

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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