Contrasting EZCORP (EZPW) & FirstCash (FCFS)

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

Profitability

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

Net Margins Return on Equity Return on Assets
EZCORP 4.93% 6.40% 4.11%
FirstCash 8.08% 8.86% 6.29%

Institutional and Insider Ownership

92.8% of EZCORP shares are owned by institutional investors. Comparatively, 95.5% of FirstCash shares are owned by institutional investors. 2.1% of EZCORP shares are owned by insiders. Comparatively, 2.8% of FirstCash shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EZCORP $747.95 million 0.96 $31.85 million $0.69 19.06
FirstCash $1.78 billion 1.95 $143.89 million $3.01 24.44

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.

Volatility and Risk

EZCORP has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, FirstCash has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Dividends

FirstCash pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. EZCORP does not pay a dividend. FirstCash pays out 26.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for EZCORP and FirstCash, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EZCORP 0 2 1 0 2.33
FirstCash 0 2 5 0 2.71

EZCORP currently has a consensus price target of $13.00, indicating a potential downside of 1.14%. FirstCash has a consensus price target of $69.80, indicating a potential downside of 5.10%. Given EZCORP’s higher possible upside, equities analysts plainly believe EZCORP is more favorable than FirstCash.

Summary

FirstCash beats EZCORP on 13 of the 16 factors compared between the two stocks.

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.

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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