Steel Connect (NASDAQ:STCN) and Fidelity National Information Services (NYSE:FIS) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.
Analyst Recommendations
This is a summary of current recommendations and price targets for Steel Connect and Fidelity National Information Services, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Steel Connect | 0 | 0 | 0 | 0 | N/A |
Fidelity National Information Services | 0 | 6 | 17 | 1 | 2.79 |
Fidelity National Information Services has a consensus price target of $160.4167, indicating a potential upside of 5.17%. Given Fidelity National Information Services' higher probable upside, analysts plainly believe Fidelity National Information Services is more favorable than Steel Connect.
Insider and Institutional Ownership
46.6% of Steel Connect shares are held by institutional investors. Comparatively, 90.5% of Fidelity National Information Services shares are held by institutional investors. 11.4% of Steel Connect shares are held by insiders. Comparatively, 0.7% of Fidelity National Information Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Steel Connect has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Fidelity National Information Services has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
Profitability
This table compares Steel Connect and Fidelity National Information Services' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Steel Connect | -1.87% | -28.00% | -1.76% |
Fidelity National Information Services | -0.83% | 6.88% | 4.08% |
Earnings and Valuation
This table compares Steel Connect and Fidelity National Information Services' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Steel Connect | $782.81 million | 0.16 | $-5,280,000.00 | N/A | N/A |
Fidelity National Information Services | $10.33 billion | 9.18 | $298 million | $5.61 | 27.19 |
Fidelity National Information Services has higher revenue and earnings than Steel Connect.
Summary
Fidelity National Information Services beats Steel Connect on 10 of the 13 factors compared between the two stocks.