Head to Head Analysis: FlexShopper (NASDAQ:FPAY) vs. Intercorp Financial Services (NYSE:IFS)

Intercorp Financial Services (NYSE:IFS) and FlexShopper (NASDAQ:FPAY) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Intercorp Financial Services and FlexShopper, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intercorp Financial Services	0	2	1	0	2.33
FlexShopper	1	0	1	0	2.00

Intercorp Financial Services currently has a consensus target price of $56.00, suggesting a potential downside of 3.96%. FlexShopper has a consensus target price of $0.50, suggesting a potential upside of 0.00%. Given FlexShopper’s higher possible upside, analysts clearly believe FlexShopper is more favorable than Intercorp Financial Services.

Profitability

This table compares Intercorp Financial Services and FlexShopper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intercorp Financial Services	30.53%	17.49%	2.13%
FlexShopper	N/A	N/A	N/A

Earnings and Valuation

This table compares Intercorp Financial Services and FlexShopper”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intercorp Financial Services	$1.67 billion	3.88	$542.25 million	$5.35	10.90
FlexShopper	$139.80 million	0.00	-$180,000.00	($0.23)	N/A

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

Risk and Volatility

Intercorp Financial Services has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, FlexShopper has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Insider & Institutional Ownership

19.4% of FlexShopper shares are owned by institutional investors. 30.2% of FlexShopper shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Intercorp Financial Services beats FlexShopper on 8 of the 12 factors compared between the two stocks.

About Intercorp Financial Services

Intercorp Financial Services Inc., together with its subsidiaries, offers banking, insurance, wealth management, and payment services for retail and commercial clients in Peru. The company provides loans, credit facilities, deposits, and current accounts; life annuity products with single-premium payment and conventional life insurance products, as well as other retail insurance products; and brokerage and investment management services. It engages in the development, management, operation, and processing of credit and debit cards; facilitation of payments and services through commercial stores; and installation and maintenance of infrastructure for transactions through electronic commerce modality and networks of payment methods processors. The company was incorporated in 1897 and is based in Lima, Peru. Intercorp Financial Services Inc. operates as a subsidiary of Intercorp Perú Ltd.

About FlexShopper

FlexShopper, Inc., a financial technology company, operates an e-commerce marketplace to shop electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis. The company offers consumer electronics; home appliances; computers, such as tablets and wearables; smartphones; tires; and jewelry and furniture, including accessories. It also provides payment options to consumers. The company offers its products under the LG, Samsung, Sony, TCL, Frigidaire, General Electric, Whirlpool, Apple, Asus, Dell, Hewlett Packard, Toshiba, Resident, Sealy, and Ashley brands. The company was formerly known as Anchor Funding Services, Inc. and changed its name to FlexShopper, Inc. in October 2013. FlexShopper, Inc. was founded in 2003 and is headquartered in Boca Raton, Florida.