Fidelity National Information Services (NYSE:FIS) and The Western Union (NYSE:WU) are both large-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Valuation & Earnings
This table compares Fidelity National Information Services and The Western Union's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Fidelity National Information Services | $10.33 billion | 9.02 | $298 million | $5.61 | 26.75 |
| The Western Union | $5.29 billion | 1.95 | $1.06 billion | $1.73 | 14.51 |
The Western Union has lower revenue, but higher earnings than Fidelity National Information Services. The Western Union 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.
Profitability
This table compares Fidelity National Information Services and The Western Union'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% |
| The Western Union | 12.38% | -1,029.12% | 8.39% |
Dividends
Fidelity National Information Services pays an annual dividend of $1.56 per share and has a dividend yield of 1.0%. The Western Union pays an annual dividend of $0.94 per share and has a dividend yield of 3.7%. Fidelity National Information Services pays out 27.8% of its earnings in the form of a dividend. The Western Union pays out 54.3% 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. Fidelity National Information Services has raised its dividend for 1 consecutive years and The Western Union has raised its dividend for 1 consecutive years.
Analyst Recommendations
This is a summary of current recommendations and price targets for Fidelity National Information Services and The Western Union, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Fidelity National Information Services | 0 | 6 | 19 | 1 | 2.81 |
| The Western Union | 5 | 7 | 5 | 0 | 2.00 |
Fidelity National Information Services currently has a consensus price target of $159.0385, indicating a potential upside of 5.98%. The Western Union has a consensus price target of $23.7667, indicating a potential downside of 5.31%. Given Fidelity National Information Services' stronger consensus rating and higher possible upside, equities research analysts clearly believe Fidelity National Information Services is more favorable than The Western Union.
Risk and Volatility
Fidelity National Information Services has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, The Western Union has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.
Insider & Institutional Ownership
90.5% of Fidelity National Information Services shares are owned by institutional investors. 0.7% of Fidelity National Information Services shares are owned by insiders. Comparatively, 1.3% of The Western Union shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Fidelity National Information Services beats The Western Union on 10 of the 17 factors compared between the two stocks.
