Critical Comparison: Fiserv (NASDAQ:FISV) vs. Pax Global Tech (OTCMKTS:PXGYF)

Pax Global Tech (OTCMKTS:PXGYF) and Fiserv (NASDAQ:FISV) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Pax Global Tech and Fiserv”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pax Global Tech	$774.67 million	0.93	$91.46 million	N/A	N/A
Fiserv	$20.46 billion	1.83	$3.13 billion	$6.47	10.63

Fiserv has higher revenue and earnings than Pax Global Tech.

Insider & Institutional Ownership

91.0% of Fiserv shares are owned by institutional investors. 0.8% of Fiserv shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Pax Global Tech and Fiserv, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pax Global Tech	0	0	0	0	0.00
Fiserv	3	23	10	0	2.19

Fiserv has a consensus price target of $121.08, suggesting a potential upside of 76.12%. Given Fiserv’s stronger consensus rating and higher probable upside, analysts plainly believe Fiserv is more favorable than Pax Global Tech.

Profitability

This table compares Pax Global Tech and Fiserv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pax Global Tech	N/A	N/A	N/A
Fiserv	17.05%	19.47%	6.43%

Volatility and Risk

Pax Global Tech has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Summary

Fiserv beats Pax Global Tech on 12 of the 12 factors compared between the two stocks.

About Pax Global Tech

PAX Global Technology Limited, an investment holding company, develops and sells electronic funds transfer point-of-sale products in Hong Kong, the People's Republic of China, the United States, and Italy. Its E-payment terminal products include smart E-payment solutions; and android smartPOS, android smart tablet, unattended payment products, PINpad, and Minipigs and mPOS. The company also develops MAXSTORE, a cloud-based Software as a Service platform that provides one-stop terminal management and valu-added services; paxRhino, a key injection service; and CyberLab, a payment application cloud test platform that provides professional one-stop online debugging and testing service. In addition, it offers payment solutions services, and maintenance and installation services. PAX Global Technology Limited was founded in 2000 and is headquartered in Wan Chai, Hong Kong.

About Fiserv

Fiserv, Inc., together with its subsidiaries, provides payments and financial services technology services in the United States, Europe, the Middle East and Africa, Latin America, the Asia-Pacific, and internationally. It operates through Merchant Acceptance, Financial Technology, and Payments and Network segments. The Merchant Acceptance segment provides merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Clover, a cloud based POS and integrated commerce operating system for small and mid-sized businesses and independent software vendors; and Carat, an integrated operating system for large businesses. This segment distributes through various channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions, and other strategic partners in the form of joint venture alliances, revenue sharing alliances, and referral agreement. The Financial Technology segment offers customer deposit and loan accounts, as well as manages an institution's general ledger and central information files. This segment also provides digital banking, financial and risk management, professional services and consulting, check processing, and other products and services. The Payments and Network segment offers card transactions, such as debit, credit, and prepaid card processing and services; funds access, debit payments, cardless ATM access, and surcharge-free ATM network; security and fraud protection products; card production; print services; and various network services, as well as non-card digital payment software and services, including bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products. It serves merchants, banks, credit unions, other financial institutions, and corporate clients. Fiserv, Inc. was incorporated in 1984 and is headquartered in Milwaukee, Wisconsin.