FleetCor Technologies (NYSE: FLT) and First Data Corporation (NYSE:FDC) are both large-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Risk and Volatility

FleetCor Technologies has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, First Data Corporation has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.

Profitability

This table compares FleetCor Technologies and First Data Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FleetCor Technologies 23.28% 20.87% 6.85%
First Data Corporation 4.66% 26.25% 3.05%

Insider and Institutional Ownership

97.6% of FleetCor Technologies shares are owned by institutional investors. Comparatively, 39.1% of First Data Corporation shares are owned by institutional investors. 4.6% of FleetCor Technologies shares are owned by insiders. Comparatively, 6.3% of First Data Corporation shares are owned by 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.

Earnings & Valuation

This table compares FleetCor Technologies and First Data Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FleetCor Technologies $2.06 billion 7.17 $1.11 billion $5.06 31.76
First Data Corporation $7.91 billion 2.10 $2.79 billion $0.59 30.53

First Data Corporation has higher revenue and earnings than FleetCor Technologies. First Data Corporation is trading at a lower price-to-earnings ratio than FleetCor Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for FleetCor Technologies and First Data Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FleetCor Technologies 0 0 12 1 3.08
First Data Corporation 0 9 21 0 2.70

FleetCor Technologies presently has a consensus target price of $181.45, suggesting a potential upside of 12.92%. First Data Corporation has a consensus target price of $19.36, suggesting a potential upside of 7.48%. Given FleetCor Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe FleetCor Technologies is more favorable than First Data Corporation.

Summary

FleetCor Technologies beats First Data Corporation on 9 of the 15 factors compared between the two stocks.

About FleetCor Technologies

FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.

About First Data Corporation

First Data Corporation is a provider of commerce-enabling technology and solutions for merchants, financial institutions and card issuers. The Company’s segments are Global Business Solutions (GBS), Global Financial Solutions (GFS), Network & Security Solutions (NSS), and Corporate. The GBS segment provides businesses of all sizes and types with a range of solutions at the point of sale, including merchant acquiring, e-commerce, mobile commerce, point-of-sale, and other business solutions. The GFS segment provides financial institutions, which include bank and non-bank issuers, such as retailers with card portfolios, with a range of solutions that enable them to offer financial products and solutions to their customers. The NSS segment provides a range of network solutions and security, risk and fraud management solutions to business and financial institution clients in its GBS and GFS segments, and to financial institutions, businesses, governments, processors and other clients.

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