American Express vs Fiserv Which Outperforms?

American Express and Fiserv are two well-known financial services companies with a long history of success in the industry. American Express is a global leader in credit cards and payment processing, known for its premium customer service and exclusive perks. On the other hand, Fiserv is a leading provider of fintech solutions for financial institutions, offering a wide range of services such as electronic payments and digital banking. Both companies have seen steady growth in their stock prices and market capitalization, making them attractive options for investors looking to capitalize on the financial services sector.

American Express or Fiserv?

When comparing American Express and Fiserv, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between American Express and Fiserv.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. American Express has a dividend yield of 0.92%, while Fiserv has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. American Express reports a 5-year dividend growth of 10.01% year and a payout ratio of 19.64%. On the other hand, Fiserv reports a 5-year dividend growth of 0.00% year and a payout ratio of 36.01%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with American Express P/E ratio at 20.97 and Fiserv's P/E ratio at 40.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. American Express P/B ratio is 6.98 while Fiserv's P/B ratio is 4.44.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, American Express has seen a 5-year revenue growth of 0.74%, while Fiserv's is 1.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Express's ROE at 34.09% and Fiserv's ROE at 10.69%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $290.49 for American Express and $212.56 for Fiserv. Over the past year, American Express's prices ranged from $153.50 to $296.83, with a yearly change of 93.37%. Fiserv's prices fluctuated between $121.07 and $215.45, with a yearly change of 77.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.