OppFi (NYSE:OPFI) versus FirstCash (NASDAQ:FCFS) Head-To-Head Contrast

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

Institutional and Insider Ownership

7.1% of OppFi shares are held by institutional investors. Comparatively, 80.3% of FirstCash shares are held by institutional investors. 70.2% of OppFi shares are held by company insiders. Comparatively, 2.9% of FirstCash shares are held by company 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.

Profitability

This table compares OppFi and FirstCash’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OppFi	10.86%	39.90%	15.95%
FirstCash	9.15%	18.68%	8.18%

Volatility and Risk

OppFi has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, FirstCash has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Earnings and Valuation

This table compares OppFi and FirstCash”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$608.66 million	1.21	$26.33 million	$0.93	9.29
FirstCash	$3.66 billion	2.71	$330.38 million	$7.98	28.39

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	0	3	1	0	2.25
FirstCash	0	1	3	2	3.17

OppFi presently has a consensus price target of $13.00, indicating a potential upside of 50.53%. FirstCash has a consensus price target of $198.00, indicating a potential downside of 12.60%. Given OppFi’s higher probable upside, research analysts clearly believe OppFi is more favorable than FirstCash.

Summary

FirstCash beats OppFi on 9 of the 15 factors compared between the two stocks.

About OppFi

OppFi Inc. operates a cialty finance platform that allows banks to offer credit access. Its platform facilitates the OppLoans, an installment loan product; SalaryTap, a payroll deduction secured installment loan product; and OppFi Card, a credit card product. OppFi Inc. was founded in 2012 and is headquartered in Chicago, Illinois.

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.