Critical Review: Cantaloupe (NASDAQ:CTLP) & Fidelity National Information Services (NYSE:FIS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fidelity National Information Services	1.09%	18.73%	8.58%
Cantaloupe	21.33%	10.43%	6.62%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Information Services	1	7	12	0	2.55
Cantaloupe	1	7	0	0	1.88

Fidelity National Information Services currently has a consensus price target of $85.41, suggesting a potential upside of 31.78%. Cantaloupe has a consensus price target of $12.73, suggesting a potential upside of 19.96%. Given Fidelity National Information Services’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Fidelity National Information Services is more favorable than Cantaloupe.

Insider and Institutional Ownership

96.2% of Fidelity National Information Services shares are owned by institutional investors. Comparatively, 75.8% of Cantaloupe shares are owned by institutional investors. 0.2% of Fidelity National Information Services shares are owned by insiders. Comparatively, 7.1% of Cantaloupe shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity National Information Services	$10.46 billion	3.21	$1.45 billion	$0.27	240.06
Cantaloupe	$312.57 million	2.50	$64.53 million	$0.21	50.55

Fidelity National Information Services has higher revenue and earnings than Cantaloupe. Cantaloupe 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.

Risk and Volatility

Fidelity National Information Services has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Cantaloupe has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Summary

Fidelity National Information Services beats Cantaloupe on 11 of the 14 factors compared between the two stocks.

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.

About Cantaloupe

Cantaloupe, Inc., a digital payments and software services company, provides technology solutions for self-service commerce market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides G11 cashless and pulse kits that are 4G LTE digital payment devices for payment and consumer engagement applications; G11 chip kit, a digital reader that accepts contact EMV and contactless EMV payment methods; Engage series comprising Engage and Engage Combo, which are digital touchscreen devices that offers networking, security, and interactivity payment methods; and card touchscreen card readers, including P66, P100, P100Pro, and P30. In addition, the company offers self-checkout kiosks,?smart store?concepts, and the Cantaloupe Go management platform comprising Go Mini, Go MiniX, Go Plus100, Go Plus200, Go Plus300, Go Max, Cooler Cafe, and Smart Market; Go Portal, a robust cloud-based platform; and Cheq products, which supports attended and unattended self-service kiosks for the stadium, entertainment, and festival sectors. Further, it provides integrated software services for payment or asset tracking devices in the field to connect into platform for advanced data management, analytics, route scheduling, and loyalty and reward programs; and a range of self-service hardware solutions for vending, micro-markets, amusement, arcade, commercial laundry, air/vacuum, car wash, and other applications. Additionally, the company offers professional, network infrastructure, card processing, and customer/consumer services. Cantaloupe, Inc. was formerly known as USA Technologies, Inc. The company was incorporated in 1992 and is headquartered in Malvern, Pennsylvania.