Swvl (NASDAQ:SWVL) vs. First Advantage (NYSE:FA) Financial Analysis

First Advantage (NYSE:FA) and Swvl (NASDAQ:SWVL) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Risk and Volatility

First Advantage has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Swvl has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Valuation and Earnings

This table compares First Advantage and Swvl”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Advantage	$1.05 billion	3.01	$37.29 million	($0.91)	-19.89
Swvl	$17.75 million	2.64	$3.06 million	N/A	N/A

First Advantage has higher revenue and earnings than Swvl.

Insider & Institutional Ownership

94.9% of First Advantage shares are held by institutional investors. Comparatively, 34.0% of Swvl shares are held by institutional investors. 5.3% of First Advantage shares are held by company insiders. Comparatively, 29.9% of Swvl shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for First Advantage and Swvl, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Advantage	0	5	3	0	2.38
Swvl	0	0	0	0	0.00

First Advantage currently has a consensus target price of $66.00, indicating a potential upside of 264.64%. Given First Advantage’s stronger consensus rating and higher probable upside, research analysts plainly believe First Advantage is more favorable than Swvl.

Profitability

This table compares First Advantage and Swvl’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Advantage	0.65%	13.16%	7.33%
Swvl	N/A	N/A	N/A

Summary

First Advantage beats Swvl on 11 of the 12 factors compared between the two stocks.

About First Advantage

First Advantage Corporation provides employment background screening, identity, and verification solutions worldwide. It offers pre-onboarding products and solutions, such as criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening, and other screening products. The company also provides post-onboarding solutions, including criminal records monitoring, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses; and other products comprising fleet/vehicle compliance, hiring tax credits and incentives, resident/tenant screening, and investigative research. Its products and solutions are used by personnel in recruiting, human resources, risk, compliance, vendor management, safety, and/or security in global enterprises, mid-sized, and small companies. The company was formerly known as Fastball Intermediate, Inc. and changed its name to First Advantage Corporation in March 2021. First Advantage Corporation was founded in 2002 and is based in Atlanta, Georgia.

About Swvl

Swvl Holdings Corp. provides mass transit ridesharing services. It offers B2C Swvl Retail, which provides riders with a network of minibuses and other vehicles running on fixed or semi-fixed routes within cities; Swvl Travel that allows riders to book rides on long-distance intercity routes on vehicle available through the Swvl platform or through third-party services; and Swvl Business, a transport as a service enterprise product for businesses, schools, municipal transit agencies, and other customers. Swvl Holdings Corp. was founded in 2017 and is headquartered in Dubai, the United Arab Emirates.