Repay (NASDAQ:RPAY – Get Free Report) and FirstCash (NASDAQ:FCFS – Get Free Report) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Profitability
This table compares Repay and FirstCash’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Repay | -39.08% | 9.04% | 4.33% |
| FirstCash | 8.88% | 17.44% | 7.92% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Repay and FirstCash, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Repay | 1 | 5 | 5 | 0 | 2.36 |
| FirstCash | 0 | 2 | 5 | 1 | 2.88 |
Insider & Institutional Ownership
82.7% of Repay shares are owned by institutional investors. Comparatively, 80.3% of FirstCash shares are owned by institutional investors. 12.0% of Repay shares are owned by insiders. Comparatively, 2.9% of FirstCash shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Repay has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, FirstCash has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.
Earnings & Valuation
This table compares Repay and FirstCash”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Repay | $313.04 million | 1.03 | -$10.16 million | ($1.37) | -2.58 |
| FirstCash | $3.39 billion | 2.23 | $258.82 million | $6.93 | 24.69 |
FirstCash has higher revenue and earnings than Repay. Repay is trading at a lower price-to-earnings ratio than FirstCash, indicating that it is currently the more affordable of the two stocks.
Summary
FirstCash beats Repay on 10 of the 14 factors compared between the two stocks.
About Repay
Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit card processing, automated clearing house (ACH) processing, e-cash, and digital wallet services; virtual credit card processing, enhanced ACH processing, instant funding, clearing and settlement, and communication solutions; and proprietary payment channels that include Web-based, virtual terminal, online client portal, mobile application, text-to-pay, interactive voice response, and point of sale services. It serves customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.
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.
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