Fidelity National Information Services (NYSE:FIS) and Farfetch (NYSE:FTCH) are both large-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.
Earnings and Valuation
This table compares Fidelity National Information Services and Farfetch's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Fidelity National Information Services | $10.33 billion | 8.33 | $298 million | $5.61 | 24.71 |
| Farfetch | $1.02 billion | 21.04 | $-385,300,000.00 | ($1.21) | -52.29 |
Fidelity National Information Services has higher revenue and earnings than Farfetch. Farfetch 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 recent recommendations for Fidelity National Information Services and Farfetch, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Fidelity National Information Services | 0 | 6 | 19 | 1 | 2.81 |
| Farfetch | 0 | 2 | 11 | 0 | 2.85 |
Fidelity National Information Services presently has a consensus target price of $159.2692, suggesting a potential upside of 14.09%. Farfetch has a consensus target price of $55.0769, suggesting a potential downside of 13.67%. Given Fidelity National Information Services' higher probable upside, equities analysts plainly believe Fidelity National Information Services is more favorable than Farfetch.
Insider & Institutional Ownership
90.5% of Fidelity National Information Services shares are held by institutional investors. Comparatively, 65.7% of Farfetch shares are held by institutional investors. 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.
Profitability
This table compares Fidelity National Information Services and Farfetch's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Fidelity National Information Services | -0.83% | 6.88% | 4.08% |
| Farfetch | -77.29% | -81.22% | -31.98% |
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, Farfetch has a beta of 3.53, indicating that its share price is 253% more volatile than the S&P 500.
Summary
Fidelity National Information Services beats Farfetch on 11 of the 15 factors compared between the two stocks.
