DHI Group (NYSE:DHX) versus Fiserv (NYSE:FI) Head-To-Head Contrast

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

Risk & Volatility

Fiserv has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, DHI Group has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Valuation & Earnings

This table compares Fiserv and DHI Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fiserv	$383.42 million	306.72	$3.07 billion	$5.20	39.75
DHI Group	$144.43 million	0.59	$3.49 million	$0.04	44.25

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fiserv	15.22%	17.10%	5.61%
DHI Group	0.95%	7.87%	3.80%

Institutional and Insider Ownership

91.0% of Fiserv shares are held by institutional investors. Comparatively, 69.3% of DHI Group shares are held by institutional investors. 0.8% of Fiserv shares are held by insiders. Comparatively, 15.8% of DHI Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Fiserv and DHI Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fiserv	0	3	21	2	2.96
DHI Group	0	0	2	0	3.00

Fiserv presently has a consensus target price of $222.88, indicating a potential upside of 7.82%. DHI Group has a consensus target price of $5.25, indicating a potential upside of 196.61%. Given DHI Group’s stronger consensus rating and higher probable upside, analysts plainly believe DHI Group is more favorable than Fiserv.

Summary

Fiserv beats DHI Group on 10 of the 15 factors compared between the two stocks.

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.

About DHI Group

DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals and other select online communities in the United States. Its solutions include talent profiles; job postings; employer branding; and other services comprising virtual and live career events, sourcing services, and content and data services that provides tailored content to help professionals manage their careers and provide employers insight into recruiting strategies and trends. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and various other technology and engineering professionals; and ClearanceJobs, an online career community, which matches security-cleared professionals with employers in a secure and private environment to fill the jobs that safeguard its nation. It serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; staffing and consulting firms; and marketing departments of companies, as well as direct hiring companies. The company offers its products and services primarily through its direct sales force and agency partner channel. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1990 and is headquartered in Centennial, Colorado.