FirstCash (NASDAQ: FCFS) and TPG RE Finance Trust (NASDAQ:TRTX) are both financials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Profitability

This table compares FirstCash and TPG RE Finance Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstCash 3.66% 4.10% 2.95%
TPG RE Finance Trust 48.73% 10.27% 3.73%

Dividends

FirstCash pays an annual dividend of $0.50 per share and has a dividend yield of 0.9%. TPG RE Finance Trust does not pay a dividend. FirstCash pays out 25.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings for FirstCash and TPG RE Finance Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstCash 0 2 4 0 2.67
TPG RE Finance Trust 0 2 3 0 2.60

FirstCash presently has a consensus price target of $60.20, indicating a potential upside of 3.08%. TPG RE Finance Trust has a consensus price target of $21.20, indicating a potential upside of 4.38%. Given TPG RE Finance Trust’s higher probable upside, analysts plainly believe TPG RE Finance Trust is more favorable than FirstCash.

Earnings & Valuation

This table compares FirstCash and TPG RE Finance Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FirstCash $1.59 billion 1.75 $249.94 million $1.97 29.64
TPG RE Finance Trust N/A N/A N/A N/A N/A

FirstCash has higher revenue and earnings than TPG RE Finance Trust.

Summary

TPG RE Finance Trust beats FirstCash on 5 of the 9 factors compared between the two stocks.

About FirstCash

FirstCash, Inc., formerly First Cash Financial Services, Inc., is an operator of retail-based pawn stores in the United States and Latin America. The Company’s primary business is the operation of full-service pawn stores, which make small pawn loans secured by personal property, such as consumer electronics, jewelry, power tools, household appliances, sporting goods and musical instruments. The Company’s operates through two segments: the U.S. operations segment and the Latin America operations segment. The U.S. operations segment consists of all pawn and consumer loan operations in the United States and the Latin America operations segment consists of all pawn and consumer loan operations in Latin America, which includes operations in Mexico, Guatemala and El Salvador. In addition, some of the Company’s pawn stores offer small unsecured consumer loans or credit services products. The Company also operates consumer finance stores in Texas and Mexico.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc. is a commercial real estate finance company. The Company is engaged in originating, acquiring and managing commercial mortgage loans and other commercial real estate-related debt instruments. It focuses primarily on directly originating and selectively acquiring floating rate first mortgage loans that are secured by high quality commercial real estate properties undergoing some form of transition and value creation, such as re-tenanting, refurbishment or other form of repositioning. As of December 31, 2016, the Company’s portfolio consisted of 54 first mortgage loans. As of December 31, 2016, 97% of the loan commitments in its portfolio consisted of floating rate loans, and 98.6% of the loan commitments in its portfolio consisted of first mortgage loans.

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