Fiserv vs Infosys Which Is More Favorable?

Fiserv and Infosys are two companies operating in the financial and technology sectors, respectively. Investors interested in these stocks may be drawn to Fiserv's strong presence in the fintech industry and Infosys' reputation as a leading IT services provider. Both companies have a track record of delivering solid financial performance, but their stocks may appeal to different types of investors with varying risk tolerances and investment goals. Understanding the key differences between Fiserv and Infosys can help investors make informed decisions about their portfolio.

Fiserv or Infosys?

When comparing Fiserv and Infosys, 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 Infosys.

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 Infosys has a dividend yield of 2.66%. 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, Infosys reports a 5-year dividend growth of -5.23% year and a payout ratio of 70.73%.

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 Infosys's P/E ratio at 28.25. 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 Infosys's P/B ratio is 8.46.

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 Infosys's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fiserv's ROE at 10.69% and Infosys's ROE at 31.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $212.56 for Fiserv and $21.77 for Infosys. Over the past year, Fiserv's prices ranged from $121.07 to $215.45, with a yearly change of 77.95%. Infosys's prices fluctuated between $16.04 and $23.48, with a yearly change of 46.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.