Fiserv vs Global Payments Which Is Superior?

Fiserv and Global Payments are two prominent players in the financial technology industry, providing innovative payment and financial solutions to businesses and consumers worldwide. Both companies have demonstrated strong growth and performance in recent years, attracting the attention of investors looking to capitalize on the rapidly evolving fintech landscape. Fiserv's focus on expanding its digital banking and payment processing capabilities has impressed investors, while Global Payments' aggressive acquisition strategy has fueled its growth trajectory. Analyzing these two stocks can provide valuable insights for investors seeking exposure to the fintech sector.

Fiserv or Global Payments?

When comparing Fiserv and Global Payments, 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 Fiserv and Global Payments.

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. Fiserv has a dividend yield of -%, while Global Payments has a dividend yield of 1.08%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Fiserv reports a 5-year dividend growth of 0.00% year and a payout ratio of 36.01%. On the other hand, Global Payments reports a 5-year dividend growth of 90.37% year and a payout ratio of 12.44%.

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 Fiserv P/E ratio at 40.24 and Global Payments's P/E ratio at 14.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Fiserv P/B ratio is 4.44 while Global Payments's P/B ratio is 1.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Fiserv has seen a 5-year revenue growth of 1.17%, while Global Payments's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fiserv's ROE at 10.69% and Global Payments's ROE at 9.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $212.56 for Fiserv and $112.03 for Global Payments. Over the past year, Fiserv's prices ranged from $121.07 to $215.45, with a yearly change of 77.95%. Global Payments's prices fluctuated between $91.60 and $141.78, with a yearly change of 54.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.