Fiserv vs Shopify Which Is More Profitable?

Fiserv and Shopify are two prominent companies in the financial and e-commerce sectors, respectively. Fiserv, a leading provider of financial services technology, offers a wide range of solutions for banks, credit unions, and other financial institutions. On the other hand, Shopify is a rapidly growing e-commerce platform that enables businesses to create online stores and sell products. Both companies have seen significant growth in recent years, but investors may need to consider their unique business models and growth prospects before making investment decisions in their stocks.

Fiserv or Shopify?

When comparing Fiserv and Shopify, 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 Shopify.

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 Shopify 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, Shopify 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 Shopify's P/E ratio at 91.11. 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 Shopify's P/B ratio is 12.65.

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 Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fiserv's ROE at 10.69% and Shopify's ROE at 14.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $212.56 for Fiserv and $88.71 for Shopify. Over the past year, Fiserv's prices ranged from $121.07 to $215.45, with a yearly change of 77.95%. Shopify's prices fluctuated between $48.56 and $92.16, with a yearly change of 89.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.