Fidelity National Information Servcs (NYSE:FIS) and TriNet Group (NYSE:TNET) are both business services 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.
Insider & Institutional Ownership
88.1% of Fidelity National Information Servcs shares are held by institutional investors. Comparatively, 86.7% of TriNet Group shares are held by institutional investors. 2.1% of Fidelity National Information Servcs shares are held by insiders. Comparatively, 38.9% of TriNet Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Fidelity National Information Servcs has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, TriNet Group has a beta of 2.4, meaning that its stock price is 140% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Fidelity National Information Servcs and TriNet Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity National Information Servcs||0||2||12||0||2.86|
Fidelity National Information Servcs currently has a consensus target price of $115.58, suggesting a potential upside of 11.41%. TriNet Group has a consensus target price of $62.00, suggesting a potential upside of 28.55%. Given TriNet Group’s higher probable upside, analysts plainly believe TriNet Group is more favorable than Fidelity National Information Servcs.
Fidelity National Information Servcs pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. TriNet Group does not pay a dividend. Fidelity National Information Servcs pays out 29.0% of its earnings in the form of a dividend.
This table compares Fidelity National Information Servcs and TriNet Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity National Information Servcs||16.59%||15.42%||6.70%|
Earnings & Valuation
This table compares Fidelity National Information Servcs and TriNet Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fidelity National Information Servcs||$9.12 billion||3.74||$1.32 billion||$4.42||23.47|
|TriNet Group||$3.28 billion||1.04||$178.00 million||$1.72||28.04|
Fidelity National Information Servcs has higher revenue and earnings than TriNet Group. Fidelity National Information Servcs is trading at a lower price-to-earnings ratio than TriNet Group, indicating that it is currently the more affordable of the two stocks.
Fidelity National Information Servcs beats TriNet Group on 9 of the 16 factors compared between the two stocks.
About Fidelity National Information Servcs
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 provides capital markets, asset management, and insurance solutions, as well as banking and payments solutions to financial institutions, such as 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.
About TriNet Group
TriNet Group, Inc. provides human resources solutions for small and midsize businesses in the United States and Canada. The company offers multi-state payroll processing and tax administration; employee benefits programs, including health insurance and retirement plans; workers compensation insurance and claims management; employment and benefit law compliance; and other services. It serves clients in various industries, including technology, life sciences, not-for-profit, professional services, financial services, property management, retail, manufacturing, and hospitality. The company markets its solutions through its sales representatives. TriNet Group, Inc. was founded in 1988 and is headquartered in San Leandro, California.
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