Head to Head Survey: Net 1 UEPS Technologies (UEPS) vs. Fiserv (FISV)

Net 1 UEPS Technologies (NASDAQ: UEPS) and Fiserv (NASDAQ:FISV) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

56.1% of Net 1 UEPS Technologies shares are held by institutional investors. Comparatively, 87.7% of Fiserv shares are held by institutional investors. 3.2% of Net 1 UEPS Technologies shares are held by insiders. Comparatively, 1.8% of Fiserv shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Net 1 UEPS Technologies has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Net 1 UEPS Technologies and Fiserv, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Net 1 UEPS Technologies 0 0 0 0 N/A
Fiserv 0 8 5 0 2.38

Fiserv has a consensus target price of $127.27, suggesting a potential downside of 1.29%. Given Fiserv’s higher probable upside, analysts plainly believe Fiserv is more favorable than Net 1 UEPS Technologies.

Profitability

This table compares Net 1 UEPS Technologies and Fiserv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Net 1 UEPS Technologies 11.96% 14.06% 7.24%
Fiserv 16.04% 41.79% 10.70%

Earnings and Valuation

This table compares Net 1 UEPS Technologies and Fiserv’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Net 1 UEPS Technologies $610.07 million 0.85 $148.02 million $1.35 6.86
Fiserv $5.59 billion 4.85 $1.75 billion $4.09 31.53

Fiserv has higher revenue and earnings than Net 1 UEPS Technologies. Net 1 UEPS Technologies is trading at a lower price-to-earnings ratio than Fiserv, indicating that it is currently the more affordable of the two stocks.

Summary

Fiserv beats Net 1 UEPS Technologies on 12 of the 13 factors compared between the two stocks.

About Net 1 UEPS Technologies

Net 1 UEPS Technologies, Inc. is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.

About Fiserv

Fiserv, Inc. is a provider of financial services technology. The Company provides account processing systems; electronic payments processing products and services, such as electronic bill payments, transaction processing, account-to-account transfers, and person-to-person payments; Internet and mobile banking systems, and related services, including document and payment card production and distribution, and lending and risk management products and services. The Company operates through two segments: Payments and Industry Products and the Financial Institution Services. The Payments segment services include electronic bill payment and presentment services, Internet and mobile banking software and services, and other electronic payments software and services. The Financial segment provides account processing services, item processing and source capture services, loan origination and servicing products, cash management and consulting services, and other products and services.

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