Lyft (NASDAQ:LYFT – Get Free Report) and Fidelity National Information Services (NYSE:FIS – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.
Risk & Volatility
Lyft has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500. Comparatively, Fidelity National Information Services has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Insider & Institutional Ownership
83.1% of Lyft shares are held by institutional investors. Comparatively, 96.2% of Fidelity National Information Services shares are held by institutional investors. 3.1% of Lyft shares are held by insiders. Comparatively, 0.2% of Fidelity National Information 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.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Lyft | $5.79 billion | 0.87 | $22.78 million | $0.06 | 201.00 |
Fidelity National Information Services | $10.13 billion | 4.18 | $1.45 billion | $2.61 | 30.61 |
Fidelity National Information Services has higher revenue and earnings than Lyft. Fidelity National Information Services is trading at a lower price-to-earnings ratio than Lyft, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Lyft and Fidelity National Information Services’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Lyft | 0.39% | 8.03% | 0.98% |
Fidelity National Information Services | 14.54% | 17.30% | 8.41% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Lyft and Fidelity National Information Services, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Lyft | 1 | 27 | 10 | 1 | 2.28 |
Fidelity National Information Services | 1 | 8 | 14 | 0 | 2.57 |
Lyft currently has a consensus price target of $16.45, suggesting a potential upside of 36.43%. Fidelity National Information Services has a consensus price target of $89.29, suggesting a potential upside of 11.77%. Given Lyft’s higher probable upside, equities analysts clearly believe Lyft is more favorable than Fidelity National Information Services.
Summary
Fidelity National Information Services beats Lyft on 10 of the 15 factors compared between the two stocks.
About Lyft
Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. The company's platform provides a ridesharing marketplace, which connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. It also offers centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.
About Fidelity National Information Services
Fidelity National Information Services, Inc. engages in the provision of financial services technology solutions for financial institutions, businesses, and developers worldwide. It operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments. The company provides core processing and ancillary applications; mobile and online banking; fraud, risk management, and compliance; card and retail payment; electronic funds transfer and network; wealth and retirement; and item processing and output solutions. It also offers trading and asset, lending, leveraged and syndicated loan markets, and treasury and risk solutions. The company was founded in 1968 and is headquartered in Jacksonville, Florida.
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