Bitauto (NYSE:BITA) and Fiserv (NASDAQ:FISV) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.
Risk and Volatility
Bitauto has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.
This table compares Bitauto and Fiserv’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Bitauto and Fiserv’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bitauto||$1.30 billion||1.04||-$260.34 million||($3.42)||-5.44|
|Fiserv||$5.70 billion||6.00||$1.25 billion||$2.56||33.48|
Fiserv has higher revenue and earnings than Bitauto. Bitauto is trading at a lower price-to-earnings ratio than Fiserv, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Bitauto and Fiserv, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bitauto presently has a consensus target price of $26.25, indicating a potential upside of 41.13%. Fiserv has a consensus target price of $86.64, indicating a potential upside of 1.10%. Given Bitauto’s higher possible upside, equities analysts clearly believe Bitauto is more favorable than Fiserv.
Institutional & Insider Ownership
36.3% of Bitauto shares are owned by institutional investors. Comparatively, 87.1% of Fiserv shares are owned by institutional investors. 17.0% of Bitauto shares are owned by insiders. Comparatively, 1.7% of Fiserv shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Fiserv beats Bitauto on 11 of the 14 factors compared between the two stocks.
Bitauto Holdings Limited, through its subsidiaries, provides Internet content and marketing services, and transaction services for the automobile industry in the People’s Republic of China. It operates in three segments: Advertising and Subscription Business, Transaction Services Business, and Digital Marketing Solutions Business. The Advertising and Subscription Business segment offers advertising services, including automobile pricing and promotional information, specifications, reviews, and consumer feedback to automakers through its bitauto.com Website and related mobile applications. It also provides transaction-focused online advertisement and promotional services for automakers, automobile dealers, auto finance partners, and insurance companies; and Web-based and mobile-based integrated digital marketing solutions to automobile dealers. The Transaction Services Business segment operates an online automobile retail transaction platform, which provides transaction platform and self-operated financing services. The Digital Marketing Solutions Business segment offers one-stop digital marketing solutions, including Website creation and maintenance, online public relation, online marketing campaign, advertising agency, big data application, and digital image creation services for automakers. The company also distributes its dealer customers’ automobile pricing and promotional information through its Internet service provider partners. Bitauto Holdings Limited was founded in 2000 and is headquartered in Beijing, the People’s Republic of China.
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.
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