FI vs. ADP, PAYX, FIS, GPN, BR, JKHY, WEX, G, MMS, and EEFT
Should you be buying Fiserv stock or one of its competitors? The main competitors of Fiserv include Automatic Data Processing (ADP), Paychex (PAYX), Fidelity National Information Services (FIS), Global Payments (GPN), Broadridge Financial Solutions (BR), Jack Henry & Associates (JKHY), WEX (WEX), Genpact (G), Maximus (MMS), and Euronet Worldwide (EEFT). These companies are all part of the "data processing & outsourced services" industry.
Automatic Data Processing (NASDAQ:ADP) and Fiserv (NYSE:FI) are both large-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, media sentiment, institutional ownership, community ranking, risk, valuation, earnings and dividends.
Automatic Data Processing has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.
Automatic Data Processing pays an annual dividend of $5.60 per share and has a dividend yield of 2.2%. Fiserv pays an annual dividend of $0.30 per share and has a dividend yield of 0.2%. Automatic Data Processing pays out 62.5% of its earnings in the form of a dividend. Fiserv pays out 5.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Automatic Data Processing has raised its dividend for 48 consecutive years. Automatic Data Processing is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Automatic Data Processing has a net margin of 19.56% compared to Automatic Data Processing's net margin of 16.68%. Fiserv's return on equity of 93.09% beat Automatic Data Processing's return on equity.
Automatic Data Processing has higher revenue and earnings than Fiserv. Automatic Data Processing is trading at a lower price-to-earnings ratio than Fiserv, indicating that it is currently the more affordable of the two stocks.
Fiserv received 114 more outperform votes than Automatic Data Processing when rated by MarketBeat users. Likewise, 62.58% of users gave Fiserv an outperform vote while only 58.85% of users gave Automatic Data Processing an outperform vote.
Automatic Data Processing presently has a consensus target price of $255.42, suggesting a potential upside of 1.23%. Fiserv has a consensus target price of $164.83, suggesting a potential upside of 8.86%. Given Automatic Data Processing's stronger consensus rating and higher possible upside, analysts plainly believe Fiserv is more favorable than Automatic Data Processing.
80.0% of Automatic Data Processing shares are owned by institutional investors. Comparatively, 91.0% of Fiserv shares are owned by institutional investors. 0.3% of Automatic Data Processing shares are owned by company insiders. Comparatively, 0.8% of Fiserv shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
In the previous week, Automatic Data Processing had 2 more articles in the media than Fiserv. MarketBeat recorded 13 mentions for Automatic Data Processing and 11 mentions for Fiserv. Automatic Data Processing's average media sentiment score of 1.28 beat Fiserv's score of 0.81 indicating that Fiserv is being referred to more favorably in the news media.
Summary
Fiserv beats Automatic Data Processing on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding FI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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