Comparing Fiserv (FISV) and Zynga (ZNGA)

Fiserv (NASDAQ: FISV) and Zynga (NASDAQ:ZNGA) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Fiserv and Zynga, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fiserv 0 8 4 0 2.33
Zynga 1 4 7 0 2.50

Fiserv currently has a consensus price target of $71.04, indicating a potential downside of 4.11%. Zynga has a consensus price target of $4.46, indicating a potential upside of 9.67%. Given Zynga’s stronger consensus rating and higher possible upside, analysts clearly believe Zynga is more favorable than Fiserv.

Risk and Volatility

Fiserv has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Zynga has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Insider and Institutional Ownership

88.1% of Fiserv shares are owned by institutional investors. Comparatively, 70.7% of Zynga shares are owned by institutional investors. 1.7% of Fiserv shares are owned by insiders. Comparatively, 11.9% of Zynga shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Fiserv and Zynga’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fiserv 24.76% 44.13% 11.42%
Zynga 4.77% 2.57% 2.17%

Valuation & Earnings

This table compares Fiserv and Zynga’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fiserv $5.70 billion 5.33 $1.25 billion $2.56 28.94
Zynga $861.39 million 4.05 $26.63 million $0.03 135.67

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

Summary

Fiserv beats Zynga on 9 of the 14 factors compared between the two stocks.

Fiserv Company Profile

Fiserv, Inc., together with its subsidiaries, provides financial services technology worldwide. The company's Payments and Industry Products segment provides electronic bill payment and presentment services; mobile banking software and services; account-to-account transfers; person-to-person payment services; debit and credit card processing and services; payments infrastructure services; and other electronic payments software and services. This segment also offers card and print personalization services; investment account processing services for separately managed accounts; and fraud and risk management products and services. Its Financial Institution Services segment provides account processing services, source capture services, loan origination and servicing products, cash management and consulting services, and other products and services that support various types of financial transactions. This segment also offers a range of services, such as customization, business process outsourcing, training, consulting, and implementation services; and ACH and treasury management, and case management and resolution to the financial services industry. The company also provides document and payment card production and distribution, check processing and imaging, and lending products and services; and bank payment and liquidity management solutions, as well as Internet based mortgage software and mortgage lending technology solutions. It serves banks, savings banks, credit unions, investment management firms, leasing and finance companies, billers, retailers, merchants, and building societies. The company was founded in 1984 and is headquartered in Brookfield, Wisconsin.

Zynga Company Profile

Zynga Inc. develops, markets, and operates social games as live services in the United States and internationally. The company's games are played on mobile platforms, such as iOS and Android operating systems, as well as on social networking sites, including Facebook. It also provides advertising services comprising mobile and display ads, engagement ads and offers, and branded virtual goods and sponsorships to advertising agencies and brokers; and software licensing and maintenance services related to NaturalMotion technology, as well as licenses its own brands. The company was formerly known as Zynga Game Network Inc. and changed its name to Zynga Inc. in November 2010. Zynga Inc. was founded in 2007 and is headquartered in San Francisco, California.

Receive News & Ratings for Fiserv Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fiserv and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply