Paymentus (NYSE:PAY) and Fidelity National Information Services (NYSE:FIS) Critical Review

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

Analyst Recommendations

This is a breakdown of recent recommendations for Fidelity National Information Services and Paymentus, as reported by MarketBeat.com.

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

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

Profitability

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

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

Institutional & Insider Ownership

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

Volatility & Risk

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

Valuation & Earnings

This table compares Fidelity National Information Services and Paymentus”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	$10.68 billion	2.01	$382.00 million	$5.16	8.03
Paymentus	$1.20 billion	3.07	$66.94 million	$0.57	51.30

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.

Summary

Fidelity National Information Services beats Paymentus on 8 of the 15 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 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.