Head to Head Contrast: Fidelity National Information Services (NYSE:FIS) versus FirstCash (NASDAQ:FCFS)

FirstCash (NASDAQ:FCFS) and Fidelity National Information Services (NYSE:FIS) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for FirstCash and Fidelity National Information Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstCash	0	2	5	1	2.88
Fidelity National Information Services	1	8	11	0	2.50

FirstCash currently has a consensus price target of $167.00, suggesting a potential downside of 1.19%. Fidelity National Information Services has a consensus price target of $81.71, suggesting a potential upside of 28.84%. Given Fidelity National Information Services’ higher possible upside, analysts plainly believe Fidelity National Information Services is more favorable than FirstCash.

Profitability

This table compares FirstCash and Fidelity National Information Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FirstCash	8.88%	17.44%	7.92%
Fidelity National Information Services	1.45%	19.76%	8.73%

Institutional & Insider Ownership

80.3% of FirstCash shares are owned by institutional investors. Comparatively, 96.2% of Fidelity National Information Services shares are owned by institutional investors. 2.9% of FirstCash shares are owned by company insiders. Comparatively, 0.2% of Fidelity National Information Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares FirstCash and Fidelity National Information Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstCash	$3.49 billion	2.14	$258.82 million	$6.93	24.39
Fidelity National Information Services	$10.46 billion	3.14	$1.45 billion	$0.27	234.89

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

Risk & Volatility

FirstCash has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Fidelity National Information Services has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Dividends

FirstCash pays an annual dividend of $1.68 per share and has a dividend yield of 1.0%. Fidelity National Information Services pays an annual dividend of $1.60 per share and has a dividend yield of 2.5%. FirstCash pays out 24.2% of its earnings in the form of a dividend. Fidelity National Information Services pays out 592.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FirstCash has raised its dividend for 8 consecutive years and Fidelity National Information Services has raised its dividend for 1 consecutive years.

Summary

Fidelity National Information Services 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 Fidelity National Information Services

Fidelity National Information Services, Inc. engages in the provision of financial services technology solutions for financial institutions, businesses, and developers worldwide. It operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments. The company provides core processing and ancillary applications; mobile and online banking; fraud, risk management, and compliance; card and retail payment; electronic funds transfer and network; wealth and retirement; and item processing and output solutions. It also offers trading and asset, lending, leveraged and syndicated loan markets, and treasury and risk solutions. The company was founded in 1968 and is headquartered in Jacksonville, Florida.