Fidelity National Information Services (NYSE:FIS) vs. Paymentus (NYSE:PAY) Financial Review

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

Risk & Volatility

Paymentus has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Fidelity National Information Services has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Earnings & Valuation

This table compares Paymentus and Fidelity National Information Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paymentus	$1.20 billion	3.07	$66.94 million	$0.57	51.30
Fidelity National Information Services	$10.68 billion	2.01	$382.00 million	$5.16	8.03

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

Institutional & Insider Ownership

78.4% of Paymentus shares are held by institutional investors. Comparatively, 96.2% of Fidelity National Information Services shares are held by institutional investors. 55.7% of Paymentus shares are held by company insiders. Comparatively, 0.3% of Fidelity National Information Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paymentus	5.78%	13.75%	11.53%
Fidelity National Information Services	23.35%	21.30%	8.60%

Analyst Ratings

This is a breakdown of current ratings and target prices for Paymentus and Fidelity National Information Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	3	3	1	2.71
Fidelity National Information Services	2	8	13	0	2.48

Paymentus currently has a consensus price target of $35.20, suggesting a potential upside of 20.38%. Fidelity National Information Services has a consensus price target of $58.77, suggesting a potential upside of 41.79%. Given Fidelity National Information Services’ higher probable upside, analysts clearly believe Fidelity National Information Services is more favorable than Paymentus.

Summary

Fidelity National Information Services beats Paymentus on 8 of the 15 factors compared between the two stocks.

About Paymentus

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.

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.