FirstCash (NASDAQ:FCFS – Get Free Report) and Freightos (NASDAQ:CRGO – Get Free Report) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Risk and Volatility
FirstCash has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Freightos has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.
Insider and Institutional Ownership
80.3% of FirstCash shares are held by institutional investors. Comparatively, 22.7% of Freightos shares are held by institutional investors. 2.9% of FirstCash shares are held by insiders. Comparatively, 19.6% of Freightos shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FirstCash | 0 | 2 | 3 | 1 | 2.83 |
| Freightos | 1 | 0 | 1 | 0 | 2.00 |
FirstCash currently has a consensus price target of $183.25, suggesting a potential downside of 8.18%. Freightos has a consensus price target of $3.00, suggesting a potential upside of 73.41%. Given Freightos’ higher possible upside, analysts clearly believe Freightos is more favorable than FirstCash.
Profitability
This table compares FirstCash and Freightos’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FirstCash | 9.02% | 17.99% | 8.03% |
| Freightos | -59.46% | -37.28% | -25.50% |
Earnings & Valuation
This table compares FirstCash and Freightos”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FirstCash | $3.66 billion | 2.40 | $330.38 million | $7.42 | 26.90 |
| Freightos | $29.46 million | 3.02 | -$17.52 million | ($0.35) | -4.94 |
FirstCash has higher revenue and earnings than Freightos. Freightos 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 Freightos on 12 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 Freightos
Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.
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