FirstCash (NASDAQ:FCFS) vs. XBP Global (NASDAQ:XBP) Critical Review

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

Earnings & Valuation

This table compares XBP Global and FirstCash”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XBP Global	$142.77 million	0.49	-$12.37 million	($0.26)	-2.31
FirstCash	$3.49 billion	2.06	$258.82 million	$6.93	23.45

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

Risk and Volatility

XBP Global has a beta of -0.38, suggesting that its share price is 138% less volatile than the S&P 500. Comparatively, FirstCash has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for XBP Global and FirstCash, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XBP Global	1	0	0	0	1.00
FirstCash	0	1	5	2	3.13

FirstCash has a consensus target price of $167.00, indicating a potential upside of 2.76%. Given FirstCash’s stronger consensus rating and higher possible upside, analysts clearly believe FirstCash is more favorable than XBP Global.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XBP Global	-11.24%	N/A	-9.62%
FirstCash	8.61%	16.63%	7.70%

Insider & Institutional Ownership

15.7% of XBP Global shares are owned by institutional investors. Comparatively, 80.3% of FirstCash shares are owned by institutional investors. 10.5% of XBP Global shares are owned by company insiders. Comparatively, 2.9% of FirstCash shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

FirstCash beats XBP Global on 14 of the 15 factors compared between the two stocks.

About XBP Global

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.

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.