Reviewing FirstCash (FCFS) & CafePress (PRSS)

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

Earnings & Valuation

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This table compares FirstCash and CafePress’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstCash	$1.78 billion	2.32	$143.89 million	$2.74	33.18
CafePress	$85.68 million	0.25	-$10.25 million	N/A	N/A

FirstCash has higher revenue and earnings than CafePress.

Institutional and Insider Ownership

95.5% of FirstCash shares are held by institutional investors. Comparatively, 8.3% of CafePress shares are held by institutional investors. 2.8% of FirstCash shares are held by company insiders. Comparatively, 17.3% of CafePress shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

FirstCash has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, CafePress has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FirstCash	8.58%	9.56%	6.74%
CafePress	-12.80%	-29.35%	-22.99%

Dividends

FirstCash pays an annual dividend of $0.88 per share and has a dividend yield of 1.0%. CafePress does not pay a dividend. FirstCash pays out 32.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for FirstCash and CafePress, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstCash	0	3	3	0	2.50
CafePress	0	0	0	0	N/A

FirstCash presently has a consensus price target of $83.80, suggesting a potential downside of 7.81%. Given FirstCash’s higher possible upside, analysts clearly believe FirstCash is more favorable than CafePress.

Summary

FirstCash beats CafePress on 11 of the 13 factors compared between the two stocks.

About FirstCash

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.

About CafePress

CafePress Inc. operates as retailer of personalized products in the United States and internationally. The company offers gifts and accessories, including T-shirts and apparel; mugs and drinkware; and home goods, such as custom shower curtains and bed coverings. It conducts its business on its primary United States based domain, CafePress.com; and operates CafePress branded Websites for the markets in the United Kingdom, Canada, and Australia. The company also sells CafePress branded products through other online retail partners. The company was formerly known as CafePress.com, Inc. and changed its name to CafePress Inc. in June 2011. CafePress Inc. was founded in 1999 and is headquartered in Louisville, Kentucky.