Contrasting Fidelity National Information Services (NYSE:FIS) and PAR Technology (NYSE:PAR)

PAR Technology (NYSE:PAR) and Fidelity National Information Services (NYSE:FIS) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Insider & Institutional Ownership

96.2% of Fidelity National Information Services shares are owned by institutional investors. 3.7% of PAR Technology shares are owned by insiders. Comparatively, 0.2% of Fidelity National Information Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares PAR Technology and Fidelity National Information Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PAR Technology	-18.54%	-2.32%	-1.42%
Fidelity National Information Services	3.58%	21.21%	9.11%

Risk & Volatility

PAR Technology has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Fidelity National Information Services has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for PAR Technology and Fidelity National Information Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PAR Technology	1	1	5	0	2.57
Fidelity National Information Services	2	7	13	0	2.50

PAR Technology currently has a consensus price target of $47.00, indicating a potential upside of 178.02%. Fidelity National Information Services has a consensus price target of $70.50, indicating a potential upside of 39.81%. Given PAR Technology’s stronger consensus rating and higher probable upside, research analysts clearly believe PAR Technology is more favorable than Fidelity National Information Services.

Earnings and Valuation

This table compares PAR Technology and Fidelity National Information Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PAR Technology	$455.55 million	1.53	-$84.46 million	($2.08)	-8.13
Fidelity National Information Services	$10.46 billion	2.48	$382.00 million	$0.73	69.08

Fidelity National Information Services has higher revenue and earnings than PAR Technology. PAR Technology is trading at a lower price-to-earnings ratio than Fidelity National Information Services, indicating that it is currently the more affordable of the two stocks.

Summary

Fidelity National Information Services beats PAR Technology on 10 of the 14 factors compared between the two stocks.

About PAR Technology

PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and kitchen display systems, payment devices, cash drawers, printers, and other peripherals. In addition, this segment provides services, such as hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services comprising inside and outside plant services, and maintenance of infrastructure and information systems; satellite ground system support comprising operations and maintenance, sustainment, upgrades, communications security management, anomaly response/resolution, process improvement, emergency response, and disaster recovery services; and information technology infrastructure library services to the United States Department of Defense, intelligence community (IC), and other federal agencies. This segment also offers various IC support services, systems integration, situational awareness solutions, and mission readiness support services. The company was founded in 1968 and is based in New Hartford, New York.

About Fidelity National Information Services

Fidelity National Information Services, Inc. engages in the provision of financial services technology solutions for financial institutions, businesses, and developers worldwide. It operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments. The company provides core processing and ancillary applications; mobile and online banking; fraud, risk management, and compliance; card and retail payment; electronic funds transfer and network; wealth and retirement; and item processing and output solutions. It also offers trading and asset, lending, leveraged and syndicated loan markets, and treasury and risk solutions. The company was founded in 1968 and is headquartered in Jacksonville, Florida.