Fidelity National Information Servcs (NYSE:FIS) and Liquidity Services (NASDAQ:LQDT) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Earnings & Valuation
This table compares Fidelity National Information Servcs and Liquidity Services’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fidelity National Information Servcs||$9.12 billion||3.69||$1.32 billion||$4.42||23.16|
|Liquidity Services||$270.02 million||0.65||-$39.18 million||($0.98)||-5.59|
Fidelity National Information Servcs has higher revenue and earnings than Liquidity Services. Liquidity Services is trading at a lower price-to-earnings ratio than Fidelity National Information Servcs, indicating that it is currently the more affordable of the two stocks.
This table compares Fidelity National Information Servcs and Liquidity Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity National Information Servcs||16.59%||15.42%||6.70%|
Fidelity National Information Servcs pays an annual dividend of $1.28 per share and has a dividend yield of 1.3%. Liquidity Services does not pay a dividend. Fidelity National Information Servcs pays out 29.0% of its earnings in the form of a dividend.
Institutional & Insider Ownership
88.0% of Fidelity National Information Servcs shares are held by institutional investors. Comparatively, 65.4% of Liquidity Services shares are held by institutional investors. 2.1% of Fidelity National Information Servcs shares are held by insiders. Comparatively, 22.1% of Liquidity Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Fidelity National Information Servcs and Liquidity Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity National Information Servcs||0||2||12||0||2.86|
Fidelity National Information Servcs presently has a consensus target price of $115.58, suggesting a potential upside of 12.90%. Liquidity Services has a consensus target price of $10.00, suggesting a potential upside of 82.48%. Given Liquidity Services’ stronger consensus rating and higher possible upside, analysts clearly believe Liquidity Services is more favorable than Fidelity National Information Servcs.
Volatility & Risk
Fidelity National Information Servcs has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Liquidity Services has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.
Fidelity National Information Servcs beats Liquidity Services on 12 of the 16 factors compared between the two stocks.
About Fidelity National Information Servcs
Fidelity National Information Services, Inc. operates as a financial services technology company in the United States and internationally. It operates through Integrated Financial Solutions and Global Financial Solutions segments. The Integrated Financial Solutions segment offers core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail solutions; corporate liquidity and wealth management services; item processing and output services; government payments solutions; and e-payment solutions. The Global Financial Solutions segment provides capital markets, asset management, and insurance solutions, as well as banking and payments solutions to financial institutions, such as securities processing and finance, global trading, asset management and insurance, and retail banking and payment services. The company was founded in 1968 and is headquartered in Jacksonville, Florida.
About Liquidity Services
Liquidity Services, Inc. provides e-commerce marketplace solutions to manage, value, and sell inventory and equipment for business and government clients in the United States. The company's marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and capital assets; govliquidation.com, which enables federal government agencies and commercial businesses to sell surplus and scrap assets; govdeals.com that enables local and state government entities, school boards, and public utilities to sell surplus and salvage assets; auctiondeals.com self-service solution which enable sellers list their assets to commercial businesses to sell surplus and salvage assets. It also operates networkintl.com, which enables corporations to sell idle, surplus, and scrap equipment in the oil and gas, petrochemical, and power generation industries; go-dove.com for corporations in the United States, Europe, and Asia to sell manufacturing surplus and salvage capital assets; irondirect.com that enables buyers to purchase equipment, attachments, parts, and services from manufacturers of construction equipment; and secondipity.com that provides consumers a source of products through donating a portion of the proceeds of sale to charity. The company's marketplaces provide professional buyers access to supply of new, surplus, and scrap assets presented with digital images and other relevant product information; and enable corporate and government sellers to enhance their financial return on assets offered for sale by providing a liquid marketplace and value-added services. It offers approximately 500 product categories in industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, energy equipment, industrial capital assets, fleet and transportation equipment, and specialty equipment. The company was founded in 1999 and is headquartered in Bethesda, Maryland.
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