Comparing Xoom Corp (XOOM) & Fiserv (FISV)

Xoom Corp (NASDAQ: XOOM) and Fiserv (NASDAQ:FISV) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Xoom Corp -37.74% -25.16% -21.82%
Fiserv 16.04% 41.79% 10.70%

Valuation and Earnings

This table compares Xoom Corp and Fiserv’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Xoom Corp N/A N/A N/A N/A N/A
Fiserv $5.59 billion 4.80 $1.75 billion $4.09 31.18

Fiserv has higher revenue and earnings than Xoom Corp.

Analyst Ratings

This is a summary of current ratings for Xoom Corp and Fiserv, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xoom Corp 0 0 0 0 N/A
Fiserv 0 8 5 0 2.38

Fiserv has a consensus price target of $126.44, suggesting a potential downside of 0.84%. Given Fiserv’s higher possible upside, analysts clearly believe Fiserv is more favorable than Xoom Corp.

Insider and Institutional Ownership

87.7% of Fiserv shares are owned by institutional investors. 1.8% of Fiserv shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Fiserv beats Xoom Corp on 8 of the 8 factors compared between the two stocks.

About Xoom Corp

Xoom Corporation (Xoom) is engaged in the digital consumer-to-consumer international money transfer business. The Company offers money transfer services from the United States to around 32 countries and its cross-border bill payment services from the United States to approximately five countries. Xoom’s solutions offer its customers a way to send money to, and pay bills for family and friends from any Internet-enabled location. The Company’s operating platform provides various solutions for transferring funds internationally, such as origination, funding, disbursement and transaction processing. The Company’s technology platform includes a customer interface which enables customers to send transactions from its Website, mobile Website or mobile application, using a computer, a tablet or a mobile phone; a risk management system; a transaction processing platform, and a disbursement integration platform. The Company provides its services under the XOOM brand.

About Fiserv

Fiserv, Inc. is a provider of financial services technology. The Company provides account processing systems; electronic payments processing products and services, such as electronic bill payments, transaction processing, account-to-account transfers, and person-to-person payments; Internet and mobile banking systems, and related services, including document and payment card production and distribution, and lending and risk management products and services. The Company operates through two segments: Payments and Industry Products and the Financial Institution Services. The Payments segment services include electronic bill payment and presentment services, Internet and mobile banking software and services, and other electronic payments software and services. The Financial segment provides account processing services, item processing and source capture services, loan origination and servicing products, cash management and consulting services, and other products and services.

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