RB Global (NYSE:RBA) & FirstCash (NASDAQ:FCFS) Head to Head Contrast

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

Analyst Ratings

This is a summary of recent recommendations for FirstCash and RB Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstCash	0	2	5	1	2.88
RB Global	0	2	6	0	2.75

FirstCash currently has a consensus price target of $167.00, indicating a potential upside of 1.17%. RB Global has a consensus price target of $122.88, indicating a potential upside of 10.91%. Given RB Global’s higher probable upside, analysts clearly believe RB Global is more favorable than FirstCash.

Dividends

FirstCash pays an annual dividend of $1.68 per share and has a dividend yield of 1.0%. RB Global pays an annual dividend of $1.24 per share and has a dividend yield of 1.1%. FirstCash pays out 24.2% of its earnings in the form of a dividend. RB Global pays out 59.3% 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. FirstCash has raised its dividend for 8 consecutive years and RB Global has raised its dividend for 20 consecutive years. RB Global is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstCash	$3.39 billion	2.15	$258.82 million	$6.93	23.82
RB Global	$4.28 billion	4.81	$413.10 million	$2.09	53.01

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FirstCash	8.88%	17.44%	7.92%
RB Global	9.65%	9.66%	4.31%

Risk and Volatility

FirstCash has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, RB Global has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Insider & Institutional Ownership

80.3% of FirstCash shares are owned by institutional investors. Comparatively, 95.4% of RB Global shares are owned by institutional investors. 14.8% of FirstCash shares are owned by insiders. Comparatively, 0.3% of RB Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

RB Global beats FirstCash on 11 of the 18 factors compared between the two stocks.

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.

About RB Global

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.