FirstCash (NYSE: FCFS) and TPG RE Finance Trust (NYSE:TRTX) are both financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for FirstCash and TPG RE Finance Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstCash 0 2 5 0 2.71
TPG RE Finance Trust 0 2 3 0 2.60

FirstCash currently has a consensus target price of $65.50, suggesting a potential downside of 4.93%. TPG RE Finance Trust has a consensus target price of $21.20, suggesting a potential upside of 11.70%. Given TPG RE Finance Trust’s higher probable upside, analysts clearly believe TPG RE Finance Trust is more favorable than FirstCash.

Insider & Institutional Ownership

95.7% of FirstCash shares are held by institutional investors. Comparatively, 26.4% of TPG RE Finance Trust shares are held by institutional investors. 2.8% of FirstCash shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares FirstCash and TPG RE Finance Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstCash 6.41% 8.45% 5.91%
TPG RE Finance Trust N/A N/A N/A

Valuation & Earnings

This table compares FirstCash and TPG RE Finance Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstCash $1.09 billion 2.99 $60.12 million $2.33 29.57
TPG RE Finance Trust $92.39 million 12.25 $69.96 million N/A N/A

TPG RE Finance Trust has lower revenue, but higher earnings than FirstCash.

Dividends

FirstCash pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. TPG RE Finance Trust pays an annual dividend of $0.71 per share and has a dividend yield of 3.7%. FirstCash pays out 34.3% of its earnings in the form of a dividend.

Summary

FirstCash beats TPG RE Finance Trust on 8 of the 13 factors compared between the two stocks.

FirstCash Company Profile

FirstCash, Inc., formerly First Cash Financial Services, Inc., is an operator of retail-based pawn stores in the United States and Latin America. The Company’s primary business is the operation of full-service pawn stores, which make small pawn loans secured by personal property, such as consumer electronics, jewelry, power tools, household appliances, sporting goods and musical instruments. The Company’s operates through two segments: the U.S. operations segment and the Latin America operations segment. The U.S. operations segment consists of all pawn and consumer loan operations in the United States and the Latin America operations segment consists of all pawn and consumer loan operations in Latin America, which includes operations in Mexico, Guatemala and El Salvador. In addition, some of the Company’s pawn stores offer small unsecured consumer loans or credit services products. The Company also operates consumer finance stores in Texas and Mexico.

TPG RE Finance Trust Company Profile

TPG RE Finance Trust, Inc. is a commercial real estate finance company. The Company is engaged in originating, acquiring and managing commercial mortgage loans and other commercial real estate-related debt instruments. It focuses primarily on directly originating and selectively acquiring floating rate first mortgage loans that are secured by high quality commercial real estate properties undergoing some form of transition and value creation, such as re-tenanting, refurbishment or other form of repositioning. As of December 31, 2016, the Company’s portfolio consisted of 54 first mortgage loans. As of December 31, 2016, 97% of the loan commitments in its portfolio consisted of floating rate loans, and 98.6% of the loan commitments in its portfolio consisted of first mortgage loans.

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