Analyzing Fiserv (FISV) and Acxiom (ACXM)

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

Risk & Volatility

Fiserv has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Acxiom has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.



Institutional and Insider Ownership

87.7% of Fiserv shares are held by institutional investors. Comparatively, 94.5% of Acxiom shares are held by institutional investors. 1.7% of Fiserv shares are held by insiders. Comparatively, 3.5% of Acxiom shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Fiserv 25.14% 44.25% 11.80%
Acxiom 2.34% 3.93% 2.45%

Valuation & Earnings

This table compares Fiserv and Acxiom’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 5.54 $1.25 billion $2.56 30.45
Acxiom $917.41 million 4.09 $23.48 million $0.44 110.18

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Fiserv and Acxiom, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fiserv 1 9 4 0 2.21
Acxiom 0 0 5 0 3.00

Fiserv presently has a consensus target price of $78.42, suggesting a potential upside of 0.62%. Acxiom has a consensus target price of $47.25, suggesting a potential downside of 2.54%. Given Fiserv’s higher probable upside, research analysts clearly believe Fiserv is more favorable than Acxiom.

Summary

Fiserv beats Acxiom on 8 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.

Acxiom Company Profile

Acxiom Corporation operates a technology and enablement services company in the United States, Europe, the Asia-Pacific, and internationally. The company operates through three segments: Connectivity, Audience Solutions, and Marketing Services. The Connectivity segment provides a foundational identity resolution layer, which enables its clients to identify and reach consumers across channels and measure the impact of marketing on sales. This segment offers LiveRamp IdentityLink, an identity resolution service that ties data back to real people and makes it possible to onboard that data for people-based marketing initiatives across digital channels. Its IdentityLink serves brands and agencies, marketing technology providers, data owners, and publishers. The Audience Solutions segment offers consumer demographics products, including InfoBase products to marketers with the ability to identify and reach the right audience with the right message across traditional and digital channels; and AbiliTec, which enables brands recognize individuals and households using various types of input variables and connect identities online and offline. The Marketing Services segment offers marketing database services, and strategy and analytics. The company serves companies and organizations in the financial services, insurance, information services, direct marketing, retail, consumer packaged goods, technology, automotive, healthcare, travel, and communications industries, as well as in the non-profit and government sectors. Acxiom Corporation was founded in 1969 and is headquartered in Conway, Arkansas.

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