FirstCash (NASDAQ:FCFS – Get Free Report) and Dave (NASDAQ:DAVE – Get Free Report) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.
Profitability
This table compares FirstCash and Dave’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FirstCash | 9.42% | 19.65% | 8.38% |
| Dave | 34.58% | 77.46% | 40.44% |
Valuation and Earnings
This table compares FirstCash and Dave”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FirstCash | $4.12 billion | 2.13 | $330.38 million | $8.76 | 23.12 |
| Dave | $554.20 million | 7.29 | $195.87 million | $15.55 | 20.45 |
FirstCash has higher revenue and earnings than Dave. Dave is trading at a lower price-to-earnings ratio than FirstCash, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for FirstCash and Dave, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FirstCash | 0 | 2 | 3 | 1 | 2.83 |
| Dave | 0 | 2 | 11 | 1 | 2.93 |
FirstCash presently has a consensus target price of $212.33, indicating a potential upside of 4.84%. Dave has a consensus target price of $412.90, indicating a potential upside of 29.87%. Given Dave’s stronger consensus rating and higher probable upside, analysts plainly believe Dave is more favorable than FirstCash.
Insider & Institutional Ownership
80.3% of FirstCash shares are owned by institutional investors. Comparatively, 18.0% of Dave shares are owned by institutional investors. 2.9% of FirstCash shares are owned by company insiders. Comparatively, 23.6% of Dave shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
FirstCash has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Dave has a beta of 3.83, indicating that its share price is 283% more volatile than the S&P 500.
Summary
Dave beats FirstCash on 10 of the 14 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 Dave
Dave, Inc. is a digital banking service. Its products include a budgeting tool to help members manage their upcoming bills to avoid overspending, cash advances through its flagship ExtraCash product to help members avoid punitive overdraft fees, a Side Hustle product, where Dave helps connect members with supplemental work opportunities, and Dave Banking, a modern checking account experience with valuable tools for building long-term financial health. The company was founded by Jason Wilk, Paras Chitrakar, and John Wolanin in October 2015 and is headquartered in Los Angeles, CA.
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