Paysafe (NYSE:PSFE – Get Free Report) and FirstCash (NASDAQ:FCFS – Get Free Report) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Paysafe and FirstCash’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Paysafe | -2.93% | 9.64% | 1.71% |
| FirstCash | 8.61% | 16.63% | 7.70% |
Analyst Ratings
This is a summary of recent ratings and price targets for Paysafe and FirstCash, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paysafe | 2 | 3 | 1 | 0 | 1.83 |
| FirstCash | 0 | 1 | 5 | 1 | 3.00 |
Insider & Institutional Ownership
54.4% of Paysafe shares are held by institutional investors. Comparatively, 80.3% of FirstCash shares are held by institutional investors. 2.9% of FirstCash shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Paysafe and FirstCash”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Paysafe | $1.70 billion | 0.44 | $22.16 million | ($0.85) | -14.73 |
| FirstCash | $3.39 billion | 2.04 | $258.82 million | $6.51 | 23.95 |
FirstCash has higher revenue and earnings than Paysafe. Paysafe is trading at a lower price-to-earnings ratio than FirstCash, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Paysafe has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500. Comparatively, FirstCash has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.
Summary
FirstCash beats Paysafe on 13 of the 15 factors compared between the two stocks.
About Paysafe
Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.
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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