Etsy (NASDAQ:ETSY) and Fidelity National Information Servcs (NYSE:FIS) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
This table compares Etsy and Fidelity National Information Servcs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity National Information Servcs||10.06%||16.71%||7.25%|
Fidelity National Information Servcs pays an annual dividend of $1.40 per share and has a dividend yield of 1.2%. Etsy does not pay a dividend. Fidelity National Information Servcs pays out 26.8% of its earnings in the form of a dividend. Fidelity National Information Servcs has increased its dividend for 2 consecutive years.
This is a summary of recent ratings and price targets for Etsy and Fidelity National Information Servcs, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity National Information Servcs||0||2||11||1||2.93|
Etsy currently has a consensus target price of $68.36, indicating a potential upside of 3.26%. Fidelity National Information Servcs has a consensus target price of $125.30, indicating a potential upside of 10.74%. Given Fidelity National Information Servcs’ stronger consensus rating and higher possible upside, analysts clearly believe Fidelity National Information Servcs is more favorable than Etsy.
Valuation and Earnings
This table compares Etsy and Fidelity National Information Servcs’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Etsy||$603.69 million||13.11||$77.49 million||$0.61||108.52|
|Fidelity National Information Servcs||$8.42 billion||4.34||$846.00 million||$5.23||21.63|
Fidelity National Information Servcs has higher revenue and earnings than Etsy. Fidelity National Information Servcs is trading at a lower price-to-earnings ratio than Etsy, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Etsy has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Fidelity National Information Servcs has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.
Insider and Institutional Ownership
94.9% of Etsy shares are owned by institutional investors. Comparatively, 90.2% of Fidelity National Information Servcs shares are owned by institutional investors. 2.8% of Etsy shares are owned by insiders. Comparatively, 2.1% of Fidelity National Information Servcs shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Etsy Company Profile
Etsy, Inc. operates Etsy.com, a commerce platform to make, sell, and buy goods online and offline primarily in the United States, United Kingdom, Canada, Australia, France, and Germany. It provides various seller services and tools that are designed to help entrepreneurs for starting, managing, and scaling their businesses. The company offers approximately 50 million items across approximately 50 retail categories to buyers. It also provides various seller services, including Etsy payments, a payment processing service; promoted listings, an on-site advertising service that allows sellers to pay for prominent placement of their listings in search results; shipping labels, which allows sellers in the United States and Canada to purchase discounted shipping labels; and pattern, a service that allows sellers to build custom Websites, as well as offers seller tools and education resources to manage the administrative side of their businesses. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.
Fidelity National Information Servcs Company Profile
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 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.
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