Financial Analysis: Fidelity National Information Services (NYSE:FIS) vs. PAR Technology (NYSE:PAR)

Fidelity National Information Services (NYSE:FIS) and PAR Technology (NYSE:PAR) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for Fidelity National Information Services and PAR Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Information Services	2	8	12	0	2.45
PAR Technology	1	2	6	0	2.56

Fidelity National Information Services presently has a consensus price target of $79.53, indicating a potential upside of 57.23%. PAR Technology has a consensus price target of $64.00, indicating a potential upside of 175.62%. Given PAR Technology’s stronger consensus rating and higher possible upside, analysts plainly believe PAR Technology is more favorable than Fidelity National Information Services.

Earnings & Valuation

This table compares Fidelity National Information Services and PAR Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity National Information Services	$10.13 billion	2.59	$1.45 billion	$0.27	187.33
PAR Technology	$440.45 million	2.14	-$4.99 million	($2.14)	-10.85

Fidelity National Information Services has higher revenue and earnings than PAR Technology. PAR Technology is trading at a lower price-to-earnings ratio than Fidelity National Information Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fidelity National Information Services and PAR Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity National Information Services	1.45%	19.76%	8.73%
PAR Technology	-19.21%	-2.56%	-1.58%

Risk and Volatility

Fidelity National Information Services has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, PAR Technology has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Dividends

Fidelity National Information Services pays an annual dividend of $1.60 per share and has a dividend yield of 3.2%. PAR Technology pays an annual dividend of $0.31 per share and has a dividend yield of 1.3%. Fidelity National Information Services pays out 592.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PAR Technology pays out -14.5% of its earnings in the form of a dividend. Fidelity National Information Services has increased its dividend for 1 consecutive years. Fidelity National Information Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

96.2% of Fidelity National Information Services shares are held by institutional investors. 0.2% of Fidelity National Information Services shares are held by company insiders. Comparatively, 3.7% of PAR Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Fidelity National Information Services beats PAR Technology on 12 of the 17 factors compared between the two stocks.

About Fidelity National Information Services

Fidelity National Information Services, Inc. engages in the provision of financial services technology solutions for financial institutions, businesses, and developers worldwide. It operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments. The company provides core processing and ancillary applications; mobile and online banking; fraud, risk management, and compliance; card and retail payment; electronic funds transfer and network; wealth and retirement; and item processing and output solutions. It also offers trading and asset, lending, leveraged and syndicated loan markets, and treasury and risk solutions. The company was founded in 1968 and is headquartered in Jacksonville, Florida.

About PAR Technology

PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and kitchen display systems, payment devices, cash drawers, printers, and other peripherals. In addition, this segment provides services, such as hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services comprising inside and outside plant services, and maintenance of infrastructure and information systems; satellite ground system support comprising operations and maintenance, sustainment, upgrades, communications security management, anomaly response/resolution, process improvement, emergency response, and disaster recovery services; and information technology infrastructure library services to the United States Department of Defense, intelligence community (IC), and other federal agencies. This segment also offers various IC support services, systems integration, situational awareness solutions, and mission readiness support services. The company was founded in 1968 and is based in New Hartford, New York.