Acacia Research (NASDAQ:ACTG – Get Free Report) and Fiserv (NASDAQ:FISV – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.
Profitability
This table compares Acacia Research and Fiserv’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acacia Research | -6.52% | 1.68% | 1.24% |
| Fiserv | -18.91% | 15.76% | 5.02% |
Valuation and Earnings
This table compares Acacia Research and Fiserv”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Acacia Research | $285.23 million | 1.42 | $21.68 million | ($0.18) | -23.08 |
| Fiserv | $21.19 billion | 1.58 | $3.48 billion | ($7.42) | -8.46 |
Fiserv has higher revenue and earnings than Acacia Research. Acacia Research is trading at a lower price-to-earnings ratio than Fiserv, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Acacia Research has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Acacia Research and Fiserv, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acacia Research | 1 | 0 | 1 | 0 | 2.00 |
| Fiserv | 4 | 21 | 6 | 0 | 2.06 |
Acacia Research presently has a consensus target price of $6.00, indicating a potential upside of 44.40%. Fiserv has a consensus target price of $64.64, indicating a potential upside of 3.03%. Given Acacia Research’s higher possible upside, equities research analysts clearly believe Acacia Research is more favorable than Fiserv.
Insider & Institutional Ownership
86.7% of Acacia Research shares are owned by institutional investors. Comparatively, 91.0% of Fiserv shares are owned by institutional investors. 1.7% of Acacia Research shares are owned by insiders. Comparatively, 0.1% of Fiserv shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Fiserv beats Acacia Research on 10 of the 14 factors compared between the two stocks.
About Acacia Research
Acacia Research Corporation is a holding company that acquires and operates businesses and assets, with a focus on industrial, energy and technology sectors. Its portfolio companies provide products and services in their respective markets, while Acacia supports their ownership and development. The company was historically known for acquiring and licensing intellectual property through subsidiaries, including patents covering a range of technologies. It has since broadened its activities to include acquiring operating businesses and other assets.
About Fiserv
Fiserv is a financial technology company that provides payment and financial services technology to banks, credit unions, businesses and merchants. Its offerings include payment processing, digital banking, account processing, debit and credit card services, and tools that help financial institutions manage customer accounts and transactions. For merchants, Fiserv offers Clover, a platform that combines point-of-sale hardware and software with payment acceptance and business management tools. The company also provides services for processing digital and in-person payments and supporting commerce across multiple channels.
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