Fiserv (NASDAQ: FISV) is one of 31 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it compare to its peers? We will compare Fiserv to related companies based on the strength of its dividends, profitability, institutional ownership, earnings, analyst recommendations, risk and valuation.

Risk & Volatility

Fiserv has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Fiserv’s peers have a beta of 1.30, meaning that their average share price is 30% more volatile than the S&P 500.

Insider & Institutional Ownership

87.7% of Fiserv shares are owned by institutional investors. Comparatively, 56.7% of shares of all “Transaction & Payment Services” companies are owned by institutional investors. 1.8% of Fiserv shares are owned by insiders. Comparatively, 18.1% of shares of all “Transaction & Payment Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Fiserv and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Fiserv $5.59 billion $1.75 billion 31.44
Fiserv Competitors $1.64 billion $481.00 million 28.53

Fiserv has higher revenue and earnings than its peers. Fiserv is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Fiserv and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fiserv 16.04% 41.79% 10.70%
Fiserv Competitors 10.74% 15.92% 5.19%

Analyst Recommendations

This is a summary of recent ratings for Fiserv and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fiserv 0 8 5 0 2.38
Fiserv Competitors 114 696 1031 12 2.51

Fiserv presently has a consensus price target of $126.44, suggesting a potential downside of 1.67%. As a group, “Transaction & Payment Services” companies have a potential upside of 8.82%. Given Fiserv’s peers stronger consensus rating and higher possible upside, analysts clearly believe Fiserv has less favorable growth aspects than its peers.

Summary

Fiserv peers beat Fiserv on 7 of the 13 factors compared.

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.

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