Fiserv (NASDAQ: FISV) and Planet Payment (NASDAQ:PLPM) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.
This table compares Fiserv and Planet Payment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
87.7% of Fiserv shares are held by institutional investors. Comparatively, 54.0% of Planet Payment shares are held by institutional investors. 1.8% of Fiserv shares are held by company insiders. Comparatively, 20.2% of Planet Payment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Fiserv and Planet Payment, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fiserv currently has a consensus target price of $126.27, suggesting a potential upside of 2.64%. Given Fiserv’s higher possible upside, equities research analysts plainly believe Fiserv is more favorable than Planet Payment.
Valuation & Earnings
This table compares Fiserv and Planet Payment’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fiserv||$5.59 billion||4.63||$1.75 billion||$4.09||30.08|
|Planet Payment||$52.79 million||3.71||$12.12 million||$0.47||8.36|
Fiserv has higher revenue and earnings than Planet Payment. Planet Payment is trading at a lower price-to-earnings ratio than Fiserv, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Fiserv has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Planet Payment has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.
Fiserv beats Planet Payment on 10 of the 14 factors compared between the two stocks.
Fiserv Company Profile
Fiserv, Inc. is a provider of financial services technology. The Company provides account processing systems; electronic payments processing products and services, such as electronic bill payments, transaction processing, account-to-account transfers, and person-to-person payments; Internet and mobile banking systems, and related services, including document and payment card production and distribution, and lending and risk management products and services. The Company operates through two segments: Payments and Industry Products and the Financial Institution Services. The Payments segment services include electronic bill payment and presentment services, Internet and mobile banking software and services, and other electronic payments software and services. The Financial segment provides account processing services, item processing and source capture services, loan origination and servicing products, cash management and consulting services, and other products and services.
Planet Payment Company Profile
Planet Payment, Inc. is a provider of international payment and transaction processing and multi-currency processing services. The Company operates through two segments: multi-currency processing services and payment processing services. Its multi-currency processing services segment includes Pay In Your Currency, Multi-Currency Pricing and Dynamic Currency Conversion at automated teller machines, enable merchants to offer customized pricing in multiple currencies. Its payment processing services consist of end-to-end authorization, capture, clearing and settlement services to its customers along with localized language support and online access to reconciliation, reporting and analytics services. It provides its services to approximately 118,000 active merchant locations in over 20 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through its acquiring bank and processor customers.
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