Fiserv vs Visa Which Is More Reliable?

Fiserv and Visa are two prominent players in the financial services industry, each offering unique services and products to clients worldwide. Fiserv focuses primarily on providing technology solutions to financial institutions, while Visa is a global payments technology company known for its credit and debit card services. Both companies have seen significant growth in the past few years, with their stocks performing well in the market. Investors looking to diversify their portfolios may find the Fiserv vs Visa stocks comparison intriguing.

Fiserv or Visa?

When comparing Fiserv and Visa, 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 Visa.

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 Visa has a dividend yield of 0.68%. 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 0.00%. On the other hand, Visa reports a 5-year dividend growth of 16.27% year and a payout ratio of 21.36%.

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 38.33 and Visa's P/E ratio at 31.51. 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 4.23 while Visa's P/B ratio is 15.89.

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 Visa's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fiserv's ROE at 10.69% and Visa's ROE at 49.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $203.86 for Fiserv and $314.34 for Visa. Over the past year, Fiserv's prices ranged from $131.41 to $223.23, with a yearly change of 69.87%. Visa's prices fluctuated between $252.70 and $317.42, with a yearly change of 25.61%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.