Fiserv (NASDAQ: FISV) and WEX (NYSE:WXS) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a summary of current ratings and price targets for Fiserv and WEX, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fiserv 0 8 5 0 2.38
WEX 0 0 0 0 N/A

Fiserv currently has a consensus target price of $126.44, indicating a potential upside of 1.70%. Given Fiserv’s higher probable upside, equities analysts plainly believe Fiserv is more favorable than WEX.

Institutional & Insider Ownership

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

Valuation & Earnings

This table compares Fiserv and WEX’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fiserv $5.59 billion 4.68 $1.75 billion $4.09 30.40
WEX N/A N/A N/A N/A N/A

Fiserv has higher revenue and earnings than WEX.

Profitability

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

Net Margins Return on Equity Return on Assets
Fiserv 16.04% 41.79% 10.70%
WEX 5.48% 4.41% 1.07%

Summary

Fiserv beats WEX on 8 of the 8 factors compared between the two stocks.

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.

WEX Company Profile

WEX Inc. is a provider of corporate payment solutions. The Company operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. The Fleet Solutions segment provides customers with payment and transaction processing services designed for the needs of commercial and government fleets. The Travel and Corporate Solutions segment focuses on the complex payment environment of business-to-business payments, providing customers with payment processing solutions for their corporate payment and transaction monitoring needs. The Health and Employee Benefit Solutions segment provides healthcare payment products and software as a service consumer directed platforms, as well as payroll related benefits to customers in Brazil. The United States operations include the Company and its subsidiaries WEX Bank, WEX FleetOne, Electronic Funds Source LLC and WEX Health.

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