Freightos (NASDAQ:CRGO) and FirstCash (NASDAQ:FCFS) Head to Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freightos	-59.46%	-37.28%	-25.50%
FirstCash	9.02%	17.99%	8.03%

Insider and Institutional Ownership

22.7% of Freightos shares are owned by institutional investors. Comparatively, 80.3% of FirstCash shares are owned by institutional investors. 19.6% of Freightos shares are owned by insiders. Comparatively, 14.8% of FirstCash 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.

Valuation and Earnings

This table compares Freightos and FirstCash”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freightos	$29.46 million	2.86	-$17.52 million	($0.35)	-4.69
FirstCash	$3.66 billion	2.26	$330.38 million	$7.42	25.34

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Freightos and FirstCash, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freightos	1	0	1	0	2.00
FirstCash	0	2	3	1	2.83

Freightos currently has a consensus price target of $3.00, indicating a potential upside of 82.93%. FirstCash has a consensus price target of $183.25, indicating a potential downside of 2.53%. Given Freightos’ higher possible upside, analysts plainly believe Freightos is more favorable than FirstCash.

Volatility and Risk

Freightos has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, FirstCash has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Summary

FirstCash beats Freightos on 12 of the 15 factors compared between the two stocks.

About Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.

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.