Euronet Worldwide (NASDAQ: EEFT) and Fiserv (NASDAQ:FISV) are both mid-cap transaction & payment services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Euronet Worldwide and Fiserv, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Euronet Worldwide 0 0 6 0 3.00
Fiserv 0 8 5 0 2.38

Euronet Worldwide currently has a consensus target price of $109.20, suggesting a potential upside of 16.57%. Fiserv has a consensus target price of $128.10, suggesting a potential upside of 0.84%. Given Euronet Worldwide’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Euronet Worldwide is more favorable than Fiserv.

Risk & Volatility

Euronet Worldwide has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Insider and Institutional Ownership

94.0% of Euronet Worldwide shares are held by institutional investors. Comparatively, 87.9% of Fiserv shares are held by institutional investors. 7.7% of Euronet Worldwide shares are held by insiders. Comparatively, 1.8% of Fiserv shares are held 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 Euronet Worldwide and Fiserv’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Euronet Worldwide $1.96 billion 2.52 $174.41 million $3.80 24.65
Fiserv $5.51 billion 4.81 $930.00 million $4.21 30.17

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

Profitability

This table compares Euronet Worldwide and Fiserv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Euronet Worldwide 9.63% 22.46% 8.02%
Fiserv 16.31% 43.56% 10.75%

Summary

Fiserv beats Euronet Worldwide on 8 of the 14 factors compared between the two stocks.

About Euronet Worldwide

Euronet Worldwide, Inc. is an electronic payments provider. The Company offers payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers. Its product offerings include automated teller machine (ATM), point-of-sale (POS), card outsourcing, card issuing and merchant acquiring services, electronic distribution of prepaid mobile airtime and other electronic payment products. It operates in three segments: EFT Processing Segment provides electronic payment solutions consisting of ATM cash withdrawal and deposit services, outsourced ATM and POS management solutions, and credit and debit card outsourcing; epay Segment provides electronic distribution and processing of prepaid mobile airtime and other electronic payment products and collection services, and Money Transfer Segment provides global consumer-to-consumer money transfer services and global account-to-account money transfer services.

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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