Global Payments vs Fiserv Which Is More Attractive?

Global Payments Inc. and Fiserv Inc. are two leading companies in the financial technology sector, both offering a wide range of payment processing services and solutions worldwide. Global Payments has shown consistent growth and innovation in recent years, attracting investors with its strong financial performance and strategic acquisitions. Meanwhile, Fiserv has positioned itself as a key player in the industry through its advanced technology and strong customer base. Both stocks have shown resilience in the market, making them attractive options for investors seeking exposure to the rapidly evolving payment industry.

Global Payments or Fiserv?

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

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. Global Payments has a dividend yield of 1.0%, while Fiserv has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Global Payments reports a 5-year dividend growth of 34.76% year and a payout ratio of 16.10%. On the other hand, Fiserv 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 Global Payments P/E ratio at 16.04 and Fiserv's P/E ratio at 41.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Global Payments P/B ratio is 1.13 while Fiserv's P/B ratio is 4.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Global Payments has seen a 5-year revenue growth of 0.60%, while Fiserv's is 0.78%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Global Payments's ROE at 7.00% and Fiserv's ROE at 11.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $99.05 for Global Payments and $222.98 for Fiserv. Over the past year, Global Payments's prices ranged from $91.60 to $140.38, with a yearly change of 53.25%. Fiserv's prices fluctuated between $145.98 and $238.59, with a yearly change of 63.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.