Fiserv (NASDAQ: FISV) and CardConnect Corp (NASDAQ:CCN) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Fiserv and CardConnect Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fiserv 0 8 5 0 2.38
CardConnect Corp 0 2 4 0 2.67

Fiserv currently has a consensus target price of $126.44, suggesting a potential downside of 1.67%. CardConnect Corp has a consensus target price of $16.00, suggesting a potential upside of 6.31%. Given CardConnect Corp’s stronger consensus rating and higher possible upside, analysts clearly believe CardConnect Corp is more favorable than Fiserv.

Earnings and Valuation

This table compares Fiserv and CardConnect Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fiserv $5.59 billion 4.84 $1.75 billion $4.09 31.44
CardConnect Corp N/A N/A N/A N/A N/A

Fiserv has higher revenue and earnings than CardConnect Corp.

Insider and Institutional Ownership

87.7% of Fiserv shares are owned by institutional investors. Comparatively, 31.6% of CardConnect Corp shares are owned by institutional investors. 1.8% of Fiserv shares are owned by company insiders. Comparatively, 48.3% of CardConnect Corp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Fiserv and CardConnect Corp’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%
CardConnect Corp -1.00% N/A -3.75%

Summary

Fiserv beats CardConnect Corp on 6 of the 9 factors compared between the two stocks.

About Fiserv

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.

About CardConnect Corp

CardConnect Corp., formerly FinTech Acquisition Corp., is a holding company. The Company holds interests in CardConnect, LLC. The Company is a provider of payment processing solutions to merchants throughout the United States. The Company’s segments include Merchant Acquiring Services and Other. The Company’s platform allows it to provide payment solutions, customer support and tools for its distribution partners and merchants. Its solutions and services enable distribution partners to manage their business and for merchants to securely accept electronic payments. Its Merchant Acquiring services business involves providing end-to-end electronic payment processing services to merchants by facilitating the exchange of information and funds between them and cardholders’ financial institutions. It undertakes or facilitates through third parties, merchant set-up and training, transaction authorization, settlement, merchant funding, merchant assistance and support, and risk management.

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