Head to Head Analysis: Fiserv (NASDAQ:FISV) versus Brightcove (NASDAQ:BCOV)

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

Risk & Volatility

Fiserv has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Brightcove has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Insider & Institutional Ownership

92.7% of Fiserv shares are owned by institutional investors. Comparatively, 77.8% of Brightcove shares are owned by institutional investors. 1.4% of Fiserv shares are owned by insiders. Comparatively, 1.9% of Brightcove shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Fiserv and Brightcove’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fiserv $5.82 billion 13.62 $1.19 billion $3.10 37.64
Brightcove $164.83 million 2.04 -$14.03 million ($0.27) -32.07

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Fiserv and Brightcove, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fiserv 0 7 21 0 2.75
Brightcove 0 0 2 0 3.00

Fiserv currently has a consensus target price of $110.70, indicating a potential downside of 5.12%. Brightcove has a consensus target price of $14.00, indicating a potential upside of 61.66%. Given Brightcove’s stronger consensus rating and higher probable upside, analysts clearly believe Brightcove is more favorable than Fiserv.

Profitability

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

Net Margins Return on Equity Return on Assets
Fiserv 12.11% 16.73% 5.69%
Brightcove -10.02% -7.81% -3.56%

Summary

Fiserv beats Brightcove on 11 of the 14 factors compared between the two stocks.

Fiserv Company Profile

Fiserv, Inc., together with its subsidiaries, provides financial services technology worldwide. The company's Payments and Industry Products segment provides electronic bill payment and presentment services; Internet and mobile banking software and services; account-to-account transfers; person-to-person payment services; debit and credit card processing and services; payments infrastructure services; and other electronic payments software and services. This segment also offers card and print personalization services; investment account processing services for separately managed accounts; and fraud and risk management products and services. Its Financial Institution Services segment provides account processing, item processing and source capture, loan origination and servicing products, cash management and consulting services, and other products and services that support various types of financial transactions. This segment also provides ACH and treasury management, case management and resolution, and source capture optimization services to the financial services industry. The company also provides bank payment and liquidity management solutions, as well as Internet based mortgage software and mortgage lending technology solutions. It serves banks, credit unions, investment management firms, leasing and finance companies, billers, retailers, and merchants. The company was founded in 1984 and is headquartered in Brookfield, Wisconsin.

Brightcove Company Profile

Brightcove Inc. provides cloud-based services for video. It offers Video Cloud, an online video platform that enables its customers to publish and distribute video to Internet-connected devices. The company also provides Zencoder, a cloud-based video encoding service for file support, quality and control, speed and reliability, platform and security, and account and integration; SSAI, a cloud-based ad insertion and video stitching service; and Player, a cloud-based service for creating and managing video player experiences. In addition, it offers Video Marketing Suite, a suite of video technologies to address the needs of marketers to drive awareness, engagement, and conversion; OTT Flow, a service for media companies and content owners to deploy direct-to-consumer, live and on-demand video services across platforms; and Enterprise video suite, an enterprise-class platform for internal communications, employee training, live streaming, marketing, and e-commerce videos. Further, the company provides account management, professional, support, and online and onsite training services. It serves media companies, broadcasters, publishers, sports and entertainment companies, fashion and hospitality brands and corporations, faith-based institutions, e-commerce platforms, and hi-tech organizations; and governments, educational institutions, and non-profit organizations through direct sales, referral partners, channel partners, and resellers in North America, Europe, Japan, the Asia Pacific, and internationally, as well as sells its products online. The company was formerly known as Video Marketplace, Inc. and changed its name to Brightcove Inc. in March 2005. Brightcove Inc. was founded in 2004 and is headquartered in Boston, Massachusetts.

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