Fiverr International (NYSE:FVRR) versus Fiserv (NYSE:FI) Financial Analysis

Fiverr International (NYSE:FVRR) and Fiserv (NYSE:FI) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fiverr International	4.66%	8.33%	2.77%
Fiserv	15.31%	17.93%	5.97%

Insider and Institutional Ownership

59.0% of Fiverr International shares are held by institutional investors. Comparatively, 91.0% of Fiserv shares are held by institutional investors. 15.9% of Fiverr International shares are held by insiders. Comparatively, 0.8% of Fiserv shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Fiverr International has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Fiverr International and Fiserv, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fiverr International	0	5	5	0	2.50
Fiserv	0	2	20	2	3.00

Fiverr International presently has a consensus target price of $34.22, indicating a potential upside of 36.31%. Fiserv has a consensus target price of $242.32, indicating a potential upside of 10.48%. Given Fiverr International’s higher probable upside, equities research analysts plainly believe Fiverr International is more favorable than Fiserv.

Valuation and Earnings

This table compares Fiverr International 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
Fiverr International	$391.48 million	2.30	$3.68 million	$0.47	53.42
Fiserv	$383.42 million	321.07	$3.13 billion	$5.39	40.69

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

Summary

Fiserv beats Fiverr International on 10 of the 15 factors compared between the two stocks.

About Fiverr International

Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company's platform includes various categories in ten verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and tech, business, data, lifestyle, and photography. It also offers value-added products, including subscription-based content marketing, back-office, learning and development offerings, creative talent, and freelancer management platforms. In addition, the company provides a suite of professional solutions that enable businesses to engage with freelancers; Fiverr Pro, a marketplace; Fiverr Certified, a storefront to access certified experts for partner vendors; Fiverr Enterprise, a gateway to source and manage on-demand and long-term freelancers. Further, it offers various value-added products, including Promoted Gigs which allows sellers to advertise their services on the platform; and Seller Plus, a subscription program that equips sellers with advanced tools. The company's buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and agencies. Fiverr International Ltd. was incorporated in 2010 and is headquartered in Tel Aviv, Israel.

About Fiserv

Fiserv, Inc., together with its subsidiaries, provides payments and financial services technology services in the United States, Europe, the Middle East and Africa, Latin America, the Asia-Pacific, and internationally. It operates through Merchant Acceptance, Financial Technology, and Payments and Network segments. The Merchant Acceptance segment provides merchant acquiring and digital commerce services; mobile payment services; security and fraud protection products; Clover, a cloud based POS and integrated commerce operating system for small and mid-sized businesses and independent software vendors; and Carat, an integrated operating system for large businesses. 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 in the form of joint venture alliances, revenue sharing alliances, and referral agreement. The Financial Technology 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, check processing, and other products and services. The Payments and Network segment offers card transactions, such as debit, credit, and prepaid card processing and services; funds access, debit payments, cardless ATM access, and surcharge-free ATM network; 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 merchants, banks, credit unions, other financial institutions, and corporate clients. Fiserv, Inc. was incorporated in 1984 and is headquartered in Milwaukee, Wisconsin.