FirstCash (NYSE: FCFS) and PHH (NYSE:PHH) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares FirstCash and PHH’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstCash $1.09 billion 2.93 $60.12 million $2.34 28.91
PHH $622.00 million 0.58 -$202.00 million ($5.74) -1.93

FirstCash has higher revenue and earnings than PHH. PHH is trading at a lower price-to-earnings ratio than FirstCash, indicating that it is currently the more affordable of the two stocks.

Dividends

FirstCash pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. PHH does not pay a dividend. FirstCash pays out 34.2% of its earnings in the form of a dividend.

Profitability

This table compares FirstCash and PHH’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%
PHH -71.84% -27.98% -9.33%

Institutional and Insider Ownership

95.7% of FirstCash shares are owned by institutional investors. Comparatively, 93.3% of PHH shares are owned by institutional investors. 2.8% of FirstCash shares are owned by insiders. Comparatively, 2.5% of PHH shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

FirstCash has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, PHH has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for FirstCash and PHH, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstCash 0 2 5 0 2.71
PHH 0 2 1 0 2.33

FirstCash presently has a consensus target price of $64.00, indicating a potential downside of 5.40%. PHH has a consensus target price of $15.83, indicating a potential upside of 42.64%. Given PHH’s higher possible upside, analysts clearly believe PHH is more favorable than FirstCash.

Summary

FirstCash beats PHH on 12 of the 15 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.

PHH Company Profile

PHH Corporation is a standalone mortgage company. The Company provides outsourced mortgage banking services to a range of clients, including financial institutions and real estate brokers throughout the United States, and is focused on originating, selling, servicing and subservicing residential mortgage loans through its subsidiary, PHH Mortgage Corporation and its subsidiaries. It operates through two segments: Mortgage Production and Mortgage Servicing. The Mortgage Production segment provides mortgage loan origination services and sells mortgage loans. The Mortgage Servicing segment performs servicing activities for loans originated by the Company and mortgage servicing rights purchased from others, and acts as a subservicer for certain clients that own the underlying mortgage servicing rights. The Mortgage Production segment provides private label mortgage services to financial institutions and real estate brokers, and sources mortgage loans through its retail platform.

Receive News & Ratings for FirstCash Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for FirstCash and related companies with MarketBeat.com's FREE daily email newsletter.