First Data Corporation (NYSE: FDC) and Fiserv (NASDAQ:FISV) are both large-cap transaction & payment services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
40.9% of First Data Corporation shares are owned by institutional investors. Comparatively, 89.4% of Fiserv shares are owned by institutional investors. 6.3% of First Data Corporation shares are owned by insiders. Comparatively, 1.8% of Fiserv shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares First Data Corporation and Fiserv’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|First Data Corporation||$11.58 billion||1.37||$420.00 million||$0.76||22.54|
|Fiserv||$5.51 billion||4.85||$930.00 million||$4.21||30.44|
Fiserv has higher revenue, but lower earnings than First Data Corporation. First Data Corporation is trading at a lower price-to-earnings ratio than Fiserv, indicating that it is currently the more affordable of the two stocks.
This table compares First Data Corporation and Fiserv’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Data Corporation||5.99%||26.60%||3.12%|
This is a breakdown of current recommendations for First Data Corporation and Fiserv, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Data Corporation||0||8||23||0||2.74|
First Data Corporation presently has a consensus price target of $19.57, indicating a potential upside of 14.25%. Fiserv has a consensus price target of $128.10, indicating a potential downside of 0.05%. Given First Data Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe First Data Corporation is more favorable than Fiserv.
Fiserv beats First Data Corporation on 8 of the 13 factors compared between the two stocks.
About First Data Corporation
First Data Corporation is a provider of commerce-enabling technology and solutions for merchants, financial institutions and card issuers. The Company’s segments are Global Business Solutions (GBS), Global Financial Solutions (GFS), Network & Security Solutions (NSS), and Corporate. The GBS segment provides businesses of all sizes and types with a range of solutions at the point of sale, including merchant acquiring, e-commerce, mobile commerce, point-of-sale, and other business solutions. The GFS segment provides financial institutions, which include bank and non-bank issuers, such as retailers with card portfolios, with a range of solutions that enable them to offer financial products and solutions to their customers. The NSS segment provides a range of network solutions and security, risk and fraud management solutions to business and financial institution clients in its GBS and GFS segments, and to financial institutions, businesses, governments, processors and other clients.
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.
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