Fiserv (NASDAQ:FISV) & Priority Technology (NASDAQ:PRTH) Financial Analysis

Priority Technology (NASDAQ:PRTHGet Rating) and Fiserv (NASDAQ:FISVGet Rating) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

13.0% of Priority Technology shares are owned by institutional investors. Comparatively, 97.2% of Fiserv shares are owned by institutional investors. 76.9% of Priority Technology shares are owned by insiders. Comparatively, 1.0% of Fiserv shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Priority Technology and Fiserv’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Priority Technology $514.90 million 0.77 $1.39 million ($0.44) -11.52
Fiserv $16.23 billion 4.01 $1.33 billion $2.56 38.93

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

Analyst Recommendations

This is a summary of current recommendations for Priority Technology and Fiserv, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Priority Technology 0 0 2 0 3.00
Fiserv 0 10 16 0 2.62

Priority Technology presently has a consensus price target of $15.00, suggesting a potential upside of 195.86%. Fiserv has a consensus price target of $126.28, suggesting a potential upside of 26.70%. Given Priority Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Priority Technology is more favorable than Fiserv.

Profitability

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

Net Margins Return on Equity Return on Assets
Priority Technology -0.37% -0.27% 0.02%
Fiserv 10.23% 12.05% 5.10%

Volatility and Risk

Priority Technology has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Summary

Fiserv beats Priority Technology on 11 of the 14 factors compared between the two stocks.

Priority Technology Company Profile (Get Rating)

Priority Technology Holdings, Inc. operates as a payment technology company in the United States. It operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business Payments, and Enterprise Payments. The company offers MX product line, including MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing as our leverage point. It also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, the company provides curated managed services and a suite of integrated accounts payable automation solutions to various financial institutions and card networks; and payment-adjacent technologies to facilitate the acceptance of electronic payments from customers. Further, it offers embedded payment and banking solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. The company serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. Priority Technology Holdings, Inc. was founded in 2005 and is headquartered in Alpharetta, Georgia.

Fiserv Company Profile (Get Rating)

Fiserv, Inc., together with its subsidiaries, provides payment and financial services technology worldwide. The company operates through Acceptance, Fintech, and Payments segments. The Acceptance segment provides point-of-sale merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Carat, an omnichannel commerce solution; Clover, a cloud-based point-of-sale and business management platform; and Clover Connect, an independent software vendors platform. This segment distributes through various channels, including direct sales teams, strategic partnerships with agent sales forces, independent software vendors, financial institutions, and other strategic partners. The Fintech segment offers customer deposit and loan accounts, as well as manages an institution's general ledger and central information files. This segment also provides digital banking, financial and risk management, professional services and consulting, item processing and source capture, and other products and services. The Payments segment offers card transactions, such as debit, credit, and prepaid card processing and services; security and fraud protection products; card production; print services; and various network services, as well as non-card digital payment software and services, including bill payment, account-to-account transfers, person-to-person payments, electronic billing, and security and fraud protection products. It serves business, banks, credit unions, other financial institutions, merchants, and corporate clients. The company was incorporated in 1984 and is headquartered in Brookfield, Wisconsin.

Want More Great Investing Ideas?

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