Fiserv vs PayPal Which Is Stronger?

Fiserv and PayPal are two leading companies in the financial technology sector, each with a unique position in the market. Fiserv focuses on providing technology solutions to financial institutions, while PayPal is a digital payments platform that serves consumers and businesses globally. Both companies have seen substantial growth in recent years, but their approaches and target markets differ significantly. Investors interested in the fintech sector may want to consider the strengths and weaknesses of both Fiserv and PayPal before making investment decisions.

Fiserv or PayPal?

When comparing Fiserv and PayPal, 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 PayPal.

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 PayPal has a dividend yield of -%. 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, PayPal reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 PayPal's P/E ratio at 19.93. 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 PayPal's P/B ratio is 4.37.

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 PayPal's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fiserv's ROE at 10.69% and PayPal's ROE at 21.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $212.56 for Fiserv and $83.38 for PayPal. Over the past year, Fiserv's prices ranged from $121.07 to $215.45, with a yearly change of 77.95%. PayPal's prices fluctuated between $53.98 and $87.47, with a yearly change of 62.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.