MoneyGram International (NASDAQ:MGI) and Fidelity National Information Services (NYSE:FIS) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
Volatility & Risk
MoneyGram International has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, Fidelity National Information Services has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.
Insider & Institutional Ownership
36.0% of MoneyGram International shares are owned by institutional investors. Comparatively, 90.5% of Fidelity National Information Services shares are owned by institutional investors. 3.4% of MoneyGram International shares are owned by insiders. Comparatively, 0.7% of Fidelity National Information Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares MoneyGram International and Fidelity National Information Services' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| MoneyGram International | $1.29 billion | 0.37 | $-60,300,000.00 | ($0.06) | -109.92 |
| Fidelity National Information Services | $10.33 billion | 8.69 | $298 million | $5.61 | 25.76 |
Fidelity National Information Services has higher revenue and earnings than MoneyGram International. MoneyGram International is trading at a lower price-to-earnings ratio than Fidelity National Information Services, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for MoneyGram International and Fidelity National Information Services, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| MoneyGram International | 1 | 0 | 1 | 0 | 2.00 |
| Fidelity National Information Services | 0 | 6 | 19 | 1 | 2.81 |
MoneyGram International currently has a consensus target price of $7.75, suggesting a potential upside of 17.51%. Fidelity National Information Services has a consensus target price of $159.0385, suggesting a potential upside of 10.05%. Given MoneyGram International's higher possible upside, research analysts clearly believe MoneyGram International is more favorable than Fidelity National Information Services.
Profitability
This table compares MoneyGram International and Fidelity National Information Services' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| MoneyGram International | -2.23% | -1.48% | 0.14% |
| Fidelity National Information Services | -0.83% | 6.88% | 4.08% |
Summary
Fidelity National Information Services beats MoneyGram International on 11 of the 15 factors compared between the two stocks.
