FirstCash (NYSE:FCFS) and Acorn International (NYSE:ATV) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Dividends

FirstCash pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Acorn International pays an annual dividend of $1.23 per share and has a dividend yield of 5.1%. FirstCash has increased its dividend for 2 consecutive years.

Valuation and Earnings

This table compares FirstCash and Acorn International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstCash N/A N/A N/A N/A N/A
Acorn International $28.44 million 3.03 $31.13 million N/A N/A

Acorn International has higher revenue and earnings than FirstCash.

Analyst Recommendations

This is a summary of recent ratings for FirstCash and Acorn International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstCash 0 1 3 0 2.75
Acorn International 0 0 0 0 N/A

FirstCash currently has a consensus target price of $105.00, indicating a potential upside of 6.10%. Given FirstCash’s higher possible upside, research analysts clearly believe FirstCash is more favorable than Acorn International.

Insider and Institutional Ownership

95.3% of FirstCash shares are owned by institutional investors. Comparatively, 0.2% of Acorn International shares are owned by institutional investors. 2.8% of FirstCash shares are owned by company insiders. Comparatively, 51.8% of Acorn International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares FirstCash and Acorn International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstCash N/A N/A N/A
Acorn International 112.41% 50.82% 42.09%

Summary

Acorn International beats FirstCash on 6 of the 10 factors compared between the two stocks.

FirstCash 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.

Acorn International Company Profile

Acorn International, Inc., an integrated multi-platform marketing company, develops, promotes, and sells products in the People's Republic of China. It operates through two segments, Integrated Direct Sales and Nationwide Distribution Network. The company, through its direct sales business platform, markets and sells products directly to consumers through its outbound marketing platform and Internet sales platform. It also provides its products through its nationwide distribution network. The company offers health and collectible, mobile phones, kitchen and household, fitness, cosmetics, auto, consumer electronics, and other products. Acorn International, Inc. was founded in 1998 and is headquartered in Shanghai, the People's Republic of China.

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