Financial Review: Expensify (NASDAQ:EXFY) versus Fiserv (NYSE:FI)

Expensify (NASDAQ:EXFY) and Fiserv (NYSE:FI) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Institutional & Insider Ownership

68.4% of Expensify shares are held by institutional investors. Comparatively, 91.0% of Fiserv shares are held by institutional investors. 12.3% of Expensify shares are held by company insiders. Comparatively, 0.7% of Fiserv shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Expensify 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
Expensify	$144.25 million	1.09	-$10.06 million	($0.16)	-12.19
Fiserv	$20.46 billion	3.44	$3.13 billion	$5.99	21.63

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Expensify and Fiserv, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expensify	0	2	2	0	2.50
Fiserv	1	2	21	1	2.88

Expensify presently has a consensus target price of $4.00, suggesting a potential upside of 105.13%. Fiserv has a consensus target price of $207.36, suggesting a potential upside of 60.06%. Given Expensify’s higher probable upside, equities analysts clearly believe Expensify is more favorable than Fiserv.

Volatility & Risk

Expensify has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Expensify	-10.72%	-12.02%	-8.52%
Fiserv	16.00%	19.69%	6.69%

Summary

Fiserv beats Expensify on 12 of the 15 factors compared between the two stocks.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.

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.