Fidelity National Information Services (NYSE:FIS) and Fiserv (NASDAQ:FISV) are both large-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.
Risk & Volatility
Fidelity National Information Services has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Fidelity National Information Services and Fiserv, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Fidelity National Information Services | 0 | 6 | 19 | 1 | 2.81 |
Fiserv | 0 | 3 | 29 | 1 | 2.94 |
Fidelity National Information Services presently has a consensus price target of $159.0385, indicating a potential upside of 5.91%. Fiserv has a consensus price target of $129.7188, indicating a potential upside of 4.23%. Given Fidelity National Information Services' higher possible upside, analysts clearly believe Fidelity National Information Services is more favorable than Fiserv.
Profitability
This table compares Fidelity National Information Services and Fiserv's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Fidelity National Information Services | -0.83% | 6.88% | 4.08% |
Fiserv | 6.01% | 8.75% | 3.90% |
Insider & Institutional Ownership
90.5% of Fidelity National Information Services shares are owned by institutional investors. Comparatively, 91.7% of Fiserv shares are owned by institutional investors. 0.7% of Fidelity National Information Services shares are owned by insiders. Comparatively, 1.6% of Fiserv shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Fidelity National Information Services and Fiserv's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Fidelity National Information Services | $10.33 billion | 9.03 | $298 million | $5.61 | 26.77 |
Fiserv | $10.19 billion | 8.16 | $893 million | $4.00 | 31.05 |
Fiserv has lower revenue, but higher earnings than Fidelity National Information Services. Fidelity National Information Services is trading at a lower price-to-earnings ratio than Fiserv, indicating that it is currently the more affordable of the two stocks.
Summary
Fiserv beats Fidelity National Information Services on 9 of the 14 factors compared between the two stocks.