FirstCash (NASDAQ:FCFS – Get Free Report) and OppFi (NYSE:OPFI – Get Free Report) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.
Profitability
This table compares FirstCash and OppFi’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FirstCash | 9.15% | 18.68% | 8.18% |
| OppFi | 10.86% | 39.90% | 15.95% |
Volatility and Risk
FirstCash has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, OppFi has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FirstCash | $3.66 billion | 2.71 | $330.38 million | $7.98 | 28.39 |
| OppFi | $608.66 million | 1.21 | $26.33 million | $0.93 | 9.29 |
FirstCash has higher revenue and earnings than OppFi. OppFi is trading at a lower price-to-earnings ratio than FirstCash, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for FirstCash and OppFi, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FirstCash | 0 | 1 | 3 | 2 | 3.17 |
| OppFi | 0 | 3 | 1 | 0 | 2.25 |
FirstCash presently has a consensus price target of $198.00, indicating a potential downside of 12.60%. OppFi has a consensus price target of $13.00, indicating a potential upside of 50.53%. Given OppFi’s higher probable upside, analysts clearly believe OppFi is more favorable than FirstCash.
Institutional and Insider Ownership
80.3% of FirstCash shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 2.9% of FirstCash shares are held by company insiders. Comparatively, 70.2% of OppFi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
FirstCash beats OppFi on 9 of the 15 factors compared between the two stocks.
About FirstCash
FirstCash Holdings, Inc, together with its subsidiaries, operates retail pawn stores in the United States, Mexico, and rest of Latin America. The company operates in three segments: U.S. Pawn, Latin America Pawn, and Retail POS Payment Solutions segments. Its pawn stores lend money on the collateral of pledged personal property, including jewelry, electronics, tools, appliances, sporting goods, and musical instruments; and retails merchandise acquired through collateral forfeitures on forfeited pawn loans and over-the-counter purchases of merchandise directly from customers. The company also provides retail POS payment solutions, which focuses on LTO products and facilitating other retail financing payment options across the network of traditional and e-commerce merchant partners. It serves cash and credit-constrained consumers. The company was formerly known as FirstCash, Inc and changed its name to FirstCash Holdings, Inc. in December 2021. FirstCash Holdings, Inc was incorporated in 1988 and is headquartered in Fort Worth, Texas.
About OppFi
OppFi Inc. operates a cialty finance platform that allows banks to offer credit access. Its platform facilitates the OppLoans, an installment loan product; SalaryTap, a payroll deduction secured installment loan product; and OppFi Card, a credit card product. OppFi Inc. was founded in 2012 and is headquartered in Chicago, Illinois.
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