Head to Head Survey: FlexShopper (FPAY) and Rent-A-Center (RCII)

FlexShopper (NASDAQ:FPAY) and Rent-A-Center (NASDAQ:RCII) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

FlexShopper has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Rent-A-Center has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

9.5% of FlexShopper shares are held by institutional investors. Comparatively, 94.2% of Rent-A-Center shares are held by institutional investors. 15.1% of FlexShopper shares are held by insiders. Comparatively, 0.9% of Rent-A-Center shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for FlexShopper and Rent-A-Center, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FlexShopper 0 0 0 0 N/A
Rent-A-Center 1 5 0 0 1.83

Rent-A-Center has a consensus target price of $10.50, indicating a potential downside of 27.23%. Given Rent-A-Center’s higher probable upside, analysts plainly believe Rent-A-Center is more favorable than FlexShopper.

Profitability

This table compares FlexShopper and Rent-A-Center’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FlexShopper -14.34% N/A -35.47%
Rent-A-Center 1.58% 6.16% 1.20%

Valuation & Earnings

This table compares FlexShopper and Rent-A-Center’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FlexShopper $67.05 million 0.06 -$8.33 million N/A N/A
Rent-A-Center $2.70 billion 0.29 $6.65 million ($0.54) -26.72

Rent-A-Center has higher revenue and earnings than FlexShopper.

Summary

Rent-A-Center beats FlexShopper on 9 of the 10 factors compared between the two stocks.

FlexShopper Company Profile

FlexShopper, Inc., through its wholly owned subsidiary, FlexShopper, LLC, provides various types of durable goods to consumers on a lease-to-own basis (LTO) to consumers of third party retailers and e-tailers. It offers products through FlexShopper.com, an LTO e-commerce marketplace; e-commerce sites and in-store terminals by utilizing FlexShopper's LTO payment method; and facilitation of LTO transactions with retailers. 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 based in Boca Raton, Florida.

Rent-A-Center Company Profile

Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a rent-to-own basis. The company operates through four segments: Core U.S., Acceptance Now, Mexico, and Franchising. It offers durable products, such as consumer electronics; appliances; computers, including tablets; smartphones; and furniture, including accessories under rental purchase agreements. The company also provides merchandise on an installment sales basis; and offers the rent-to-own transaction to consumers who do not qualify for financing from the traditional retailer through kiosks within retailer's locations. It operates retail installment sales stores under the Get It Now and Home Choice names; and rent-to-own and franchised rent-to-own stores under the Rent-A-Centre, ColorTyme, and RimTyme names. As of December 31, 2017, the company owned and operated approximately 2,381 stores in the United States, Canada, and Puerto Rico, including 45 retail installment sales stores; 1,106 Acceptance Now staffed locations in 42 states and Puerto Rico; 125 Acceptance Now Direct locations; and 131 stores in Mexico, as well as franchised 225 rent-to-own stores in 31 states under the Rent-A-Center, ColorTyme, and RimTyme names. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas.

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