Comprehensive Stock Comparison
Compare LM Funding America, Inc. (LMFA) vs FirstCash Holdings, Inc (FCFS) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | LMFA | 77.7% revenue growth vs FCFS's 8.0% |
| Quality / Margins | FCFS | 9.0% net margin vs LMFA's -66.5% |
| Stability / Safety | FCFS | Beta 0.31 vs LMFA's 1.82, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | FCFS | +73.2% vs LMFA's -75.2% |
| Efficiency (ROA) | FCFS | 6.0% ROA vs LMFA's -12.3%, ROIC 12.7% vs -12.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
LM Funding America is a specialty finance company that purchases delinquent homeowner association assessment accounts from community associations. It generates revenue primarily by collecting on these purchased delinquent accounts — typically through payment plans or legal action — and earns interest and fees on the amounts recovered. The company's key advantage lies in its specialized expertise in HOA collections and its New Neighbor Guaranty program, which provides associations with upfront payments for delinquent accounts.
FirstCash Holdings operates a large network of pawn shops across the Americas that provide short-term collateralized loans and sell forfeited merchandise. It generates revenue primarily from pawn loan interest and fees (roughly 70% of total) and retail sales of forfeited collateral and purchased goods (about 30%). The company's competitive advantage lies in its extensive physical footprint—over 2,800 stores—and operational expertise in managing the pawn lending cycle across diverse markets.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
FCFS leads in 5 of 6 categories (Financial Metrics, Profitability & Efficiency). LMFA leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
FCFS is the larger business by revenue, generating $3.7B annually — 332.8x LMFA's $11M. FCFS is the more profitable business, keeping 9.0% of every revenue dollar as net income compared to LMFA's -66.5%.
| Metric | LMFALM Funding Americ… | FCFSFirstCash Holding… |
|---|---|---|
| RevenueTrailing 12 months | $11M | $3.7B |
| EBITDAEarnings before interest/tax | -$264,638 | $897M |
| Net IncomeAfter-tax profit | -$7M | $310M |
| Free Cash FlowCash after capex | -$14M | $528M |
| Gross MarginGross profit ÷ Revenue | +36.4% | +100.0% |
| Operating MarginEBIT ÷ Revenue | -58.7% | +15.4% |
| Net MarginNet income ÷ Revenue | -66.5% | +9.0% |
| FCF MarginFCF ÷ Revenue | -124.4% | — |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +100.0% | +29.2% |
Valuation Metrics
On an enterprise value basis, LMFA's 7.7x EV/EBITDA is more attractive than FCFS's 8.7x.
| Metric | LMFALM Funding Americ… | FCFSFirstCash Holding… |
|---|---|---|
| Market CapShares × price | $6M | $8.5B |
| Enterprise ValueMkt cap + debt − cash | $10M | $8.6B |
| Trailing P/EPrice ÷ TTM EPS | -0.14x | 25.98x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 18.64x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.10x |
| EV / EBITDAEnterprise value multiple | 7.70x | 8.66x |
| Price / SalesMarket cap ÷ Revenue | 0.53x | 2.32x |
| Price / BookPrice ÷ Book value/share | 0.03x | 3.77x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
FCFS delivers a 14.1% return on equity — every $100 of shareholder capital generates $14 in annual profit, vs $-15 for LMFA. FCFS carries lower financial leverage with a 0.11x debt-to-equity ratio, signaling a more conservative balance sheet compared to LMFA's 0.22x. On the Piotroski fundamental quality scale (0–9), FCFS scores 6/9 vs LMFA's 3/9, reflecting solid financial health.
| Metric | LMFALM Funding Americ… | FCFSFirstCash Holding… |
|---|---|---|
| ROE (TTM)Return on equity | -15.3% | +14.1% |
| ROA (TTM)Return on assets | -12.3% | +6.0% |
| ROICReturn on invested capital | -12.3% | +12.7% |
| ROCEReturn on capital employed | -16.4% | +12.5% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 6 |
| Debt / EquityFinancial leverage | 0.22x | 0.11x |
| Net DebtTotal debt minus cash | $4M | $124M |
| Cash & Equiv.Liquid assets | $3M | $125M |
| Total DebtShort + long-term debt | $8M | $249M |
| Interest CoverageEBIT ÷ Interest expense | -3.92x | 4.66x |
Total Returns (with DRIP)
A $10,000 investment in FCFS five years ago would be worth $30,784 today (with dividends reinvested), compared to $78 for LMFA. Over the past 12 months, FCFS leads with a +73.2% total return vs LMFA's -75.2%. The 3-year compound annual growth rate (CAGR) favors FCFS at 30.8% vs LMFA's -63.8% — a key indicator of consistent wealth creation.
| Metric | LMFALM Funding Americ… | FCFSFirstCash Holding… |
|---|---|---|
| YTD ReturnYear-to-date | -22.8% | +23.2% |
| 1-Year ReturnPast 12 months | -75.2% | +73.2% |
| 3-Year ReturnCumulative with dividends | -95.3% | +123.6% |
| 5-Year ReturnCumulative with dividends | -99.2% | +207.8% |
| 10-Year ReturnCumulative with dividends | +20.2% | +384.4% |
| CAGR (3Y)Annualised 3-year return | -63.8% | +30.8% |
Risk & Volatility
FCFS is the less volatile stock with a 0.31 beta — it tends to amplify market swings less than LMFA's 1.82 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. FCFS currently trades 99.4% from its 52-week high vs LMFA's 7.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LMFALM Funding Americ… | FCFSFirstCash Holding… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.82x | 0.31x |
| 52-Week HighHighest price in past year | $5.14 | $193.96 |
| 52-Week LowLowest price in past year | $0.29 | $109.51 |
| % of 52W HighCurrent price vs 52-week peak | +7.3% | +99.4% |
| RSI (14)Momentum oscillator 0–100 | 50.0 | 74.6 |
| Avg Volume (50D)Average daily shares traded | 372K | 212K |
Analyst Outlook
| Metric | LMFALM Funding Americ… | FCFSFirstCash Holding… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Hold |
| Price TargetConsensus 12-month target | — | $217.00 |
| # AnalystsCovering analysts | — | 19 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | 9 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | 100 | 1.41 | -98.6% |
| FirstCash Holdings,… (FCFS) | 100 | 213.23 | +113.2% |
FirstCash Holdings,… (FCFS) returned +208% over 5 years vs LM Funding America,… (LMFA)'s -99%. A $10,000 investment in FCFS 5 years ago would be worth $30,784 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | $5M | $11M | +138.8% |
| FirstCash Holdings,… (FCFS) | $1.1B | $3.7B | +236.4% |
FirstCash Holdings, Inc's revenue grew from $1.1B (2016) to $3.7B (2025) — a 14.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | -51.5% | -66.5% | -29.3% |
| FirstCash Holdings,… (FCFS) | 5.5% | 9.0% | +63.3% |
FirstCash Holdings, Inc's net margin went from 6% (2016) to 9% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| FirstCash Holdings,… (FCFS) | 22.5 | 21.5 | -4.4% |
FirstCash Holdings, Inc has traded in a 16x–27x P/E range over 9 years; current trailing P/E is ~26x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| LM Funding America,… (LMFA) | -35.91 | -2.61 | +92.7% |
| FirstCash Holdings,… (FCFS) | 1.72 | 7.42 | +331.4% |
FirstCash Holdings, Inc's EPS grew from $1.72 (2016) to $7.42 (2025) — a 18% CAGR.
Chart 6Free Cash Flow — 5 Years
LM Funding America, Inc. generated $-14M FCF in 2024 (+7% vs 2021). FirstCash Holdings, Inc generated $0M FCF in 2025 (-100% vs 2021).
LMFA vs FCFS: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is LMFA or FCFS a better buy right now?
FirstCash Holdings, Inc (FCFS) offers the better valuation at 26.0x trailing P/E (18.6x forward), making it the more compelling value choice. Analysts rate FirstCash Holdings, Inc (FCFS) a "Hold" — based on 19 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — LMFA or FCFS?
Over the past 5 years, FirstCash Holdings, Inc (FCFS) delivered a total return of +207.8%, compared to -99.2% for LM Funding America, Inc. (LMFA). A $10,000 investment in FCFS five years ago would be worth approximately $31K today (assuming dividends reinvested). Over 10 years, the gap is even starker: FCFS returned +384.4% versus LMFA's +20.2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — LMFA or FCFS?
By beta (market sensitivity over 5 years), FirstCash Holdings, Inc (FCFS) is the lower-risk stock at 0.31β versus LM Funding America, Inc.'s 1.82β — meaning LMFA is approximately 483% more volatile than FCFS relative to the S&P 500. On balance sheet safety, FirstCash Holdings, Inc (FCFS) carries a lower debt/equity ratio of 11% versus 22% for LM Funding America, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — LMFA or FCFS?
FirstCash Holdings, Inc (FCFS) is the more profitable company, earning 9.0% net margin versus -66.5% for LM Funding America, Inc. — meaning it keeps 9.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FCFS leads at 15.4% versus -58.7% for LMFA. At the gross margin level — before operating expenses — FCFS leads at 100.0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Which pays a better dividend — LMFA or FCFS?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
06Is LMFA or FCFS better for a retirement portfolio?
For long-horizon retirement investors, FirstCash Holdings, Inc (FCFS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.31), +384.4% 10Y return). LM Funding America, Inc. (LMFA) carries a higher beta of 1.82 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (FCFS: +384.4%, LMFA: +20.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
07What are the main differences between LMFA and FCFS?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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