FleetCor Technologies (NYSE: FLT) and Fiserv (NASDAQ:FISV) are both large-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for FleetCor Technologies and Fiserv, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FleetCor Technologies 0 0 14 1 3.07
Fiserv 0 8 5 0 2.38

FleetCor Technologies presently has a consensus target price of $182.46, indicating a potential upside of 25.82%. Fiserv has a consensus target price of $126.44, indicating a potential upside of 1.92%. Given FleetCor Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe FleetCor Technologies is more favorable than Fiserv.

Earnings and Valuation

This table compares FleetCor Technologies and Fiserv’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FleetCor Technologies $2.06 billion 6.47 $1.11 billion $5.06 28.66
Fiserv $5.59 billion 4.67 $1.75 billion $4.09 30.33

Fiserv has higher revenue and earnings than FleetCor Technologies. FleetCor Technologies is trading at a lower price-to-earnings ratio than Fiserv, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

FleetCor Technologies has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Insider and Institutional Ownership

97.6% of FleetCor Technologies shares are held by institutional investors. Comparatively, 87.7% of Fiserv shares are held by institutional investors. 4.3% of FleetCor Technologies shares are held by company insiders. Comparatively, 1.8% of Fiserv shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares FleetCor Technologies and Fiserv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FleetCor Technologies 23.28% 20.87% 6.85%
Fiserv 16.04% 41.79% 10.70%

Summary

FleetCor Technologies beats Fiserv on 10 of the 15 factors compared between the two stocks.

About FleetCor Technologies

FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.

About Fiserv

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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