First Cash Financial Services (FCFS) and Ferrellgas Partners (FGP) Head-To-Head Comparison

First Cash Financial Services (NYSE: FCFS) and Ferrellgas Partners (NYSE:FGP) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for First Cash Financial Services and Ferrellgas Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Cash Financial Services 0 3 4 0 2.57
Ferrellgas Partners 2 2 0 0 1.50

First Cash Financial Services currently has a consensus target price of $80.17, indicating a potential downside of 13.33%. Ferrellgas Partners has a consensus target price of $3.50, indicating a potential downside of 6.67%. Given Ferrellgas Partners’ higher possible upside, analysts plainly believe Ferrellgas Partners is more favorable than First Cash Financial Services.

Dividends

First Cash Financial Services pays an annual dividend of $0.88 per share and has a dividend yield of 1.0%. Ferrellgas Partners pays an annual dividend of $0.40 per share and has a dividend yield of 10.7%. First Cash Financial Services pays out 32.1% of its earnings in the form of a dividend. Ferrellgas Partners pays out -72.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ferrellgas Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

97.5% of First Cash Financial Services shares are owned by institutional investors. Comparatively, 5.2% of Ferrellgas Partners shares are owned by institutional investors. 2.8% of First Cash Financial Services shares are owned by insiders. Comparatively, 0.5% of Ferrellgas Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares First Cash Financial Services and Ferrellgas Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Cash Financial Services 8.58% 9.56% 6.74%
Ferrellgas Partners -4.54% N/A -2.98%

Volatility & Risk

First Cash Financial Services has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Ferrellgas Partners has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Valuation and Earnings

This table compares First Cash Financial Services and Ferrellgas Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Cash Financial Services $1.78 billion 2.36 $143.89 million $2.74 33.76
Ferrellgas Partners $1.93 billion 0.19 -$54.20 million ($0.55) -6.82

First Cash Financial Services has higher earnings, but lower revenue than Ferrellgas Partners. Ferrellgas Partners is trading at a lower price-to-earnings ratio than First Cash Financial Services, indicating that it is currently the more affordable of the two stocks.

Summary

First Cash Financial Services beats Ferrellgas Partners on 12 of the 16 factors compared between the two stocks.

First Cash Financial Services Company Profile

FirstCash, Inc. operates retail-based pawn and consumer finance stores in the United States and Mexico. Its pawn stores lend money on the collateral of pledged personal property, including consumer electronics, jewelry, power tools, household appliances, sporting goods, and musical instruments; and retails previously owned merchandise acquired through pawn forfeitures, as well as through purchases from the general public. The company also engages in melting scrap jewelry, as well as sells the gold, silver, and diamonds in commodity markets. Its consumer finance stores provide small unsecured consumer loans, credit services, and check cashing services. As of December 31, 2017, the company owned and operated 2,039 pawn stores and 72 consumer loan stores in 26 states of the United States and 32 states of Mexico, as well as Guatemala and El Salvador. The company was formerly known as First Cash Financial Services, Inc. and changed its name to FirstCash, Inc. in September 2016. FirstCash, Inc. was founded in 1988 and is headquartered in Fort Worth, Texas.

Ferrellgas Partners Company Profile

Ferrellgas Partners, L.P. distributes and sells propane and related equipment and supplies primarily in the United States. It operates in two segments, Propane Operations and Related Equipment Sales, and Midstream Operations. The company transports propane to propane distribution locations, tanks on customers' premises, or to portable propane tanks delivered to retailers. It conducts its portable tank exchange operations under the Blue Rhino brand name through a network of independent and partnership-owned distribution outlets. The company's propane is primarily used for space heating, water heating, cooking, outdoor cooking using gas grills, crop drying, irrigation, weed control, and other propane fueled appliances; as an engine fuel for combustion engine vehicles and forklifts; and as a heating or energy source in manufacturing and drying processes. It serves residential, industrial/commercial, portable tank exchange, agricultural, wholesale, and other customers in 50 States, the District of Columbia, and Puerto Rico. As of July 31, 2017, it operated 61 service centers and 789 propane distribution locations. The company is also involved in the sale of refined fuels; provision of common carrier services; retail sale of propane appliances and related parts and fittings, as well as other retail propane related services and consumer products; sale of gas grills, grilling tools and accessories, patio heaters, fireplace and garden accessories, mosquito traps, and other outdoor products; and treatment and disposal of salt water generated from crude oil production, as well as in the sale of crude oil. In addition, it operates salt water disposal wells in the Eagle Ford shale region of south Texas; and provides crude oil transportation and logistics services under the Bridger Logistics brand name. Ferrellgas Partners, L.P. was founded in 1939 and is headquartered in Overland Park, Kansas.

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