Comparing Fidelity National Information Services (NYSE:FIS) and Freightos (NASDAQ:CRGO)

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

Insider and Institutional Ownership

22.7% of Freightos shares are held by institutional investors. Comparatively, 96.2% of Fidelity National Information Services shares are held by institutional investors. 19.6% of Freightos shares are held by insiders. Comparatively, 0.2% of Fidelity National Information Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freightos	-59.46%	-37.28%	-25.50%
Fidelity National Information Services	3.58%	21.21%	9.11%

Valuation & Earnings

This table compares Freightos and Fidelity National Information Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freightos	$29.46 million	2.30	-$22.49 million	($0.35)	-3.77
Fidelity National Information Services	$10.68 billion	2.45	$1.45 billion	$0.73	69.60

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freightos	1	0	1	0	2.00
Fidelity National Information Services	2	7	13	0	2.50

Freightos presently has a consensus price target of $3.00, suggesting a potential upside of 127.27%. Fidelity National Information Services has a consensus price target of $70.50, suggesting a potential upside of 38.76%. Given Freightos’ higher possible upside, equities research analysts plainly believe Freightos is more favorable than Fidelity National Information Services.

Risk and Volatility

Freightos has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Fidelity National Information Services has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Summary

Fidelity National Information Services beats Freightos on 12 of the 14 factors compared between the two stocks.

About Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.

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.