Fiserv, Inc. (FISV) vs International Business Machines Corporation (IBM)

Fiserv, Inc. and International Business Machines Corporation are both Information Technology Services companies. International Business Machines Corporation is the larger, with a market value of $233.6B against $33.4B — 7.0× the size. Fiserv, Inc. has negative trailing earnings, so its P/E is not meaningful; International Business Machines Corporation trades at 20.9×. International Business Machines Corporation grew revenue faster over the last twelve months: 6.83% against −1.71%. International Business Machines Corporation has the higher net margin (16.0% vs −18.9%) and the higher return on invested capital (7.94% vs −2.98%). Across the 21 metrics below, International Business Machines Corporation leads on 12 and Fiserv, Inc. on 9.

Valuation

Metric FISV IBM Information Technology Services median
P/E n/m 20.86 17.60
P/S 1.61 3.36 1.16
P/B 1,395.63 6.48 1.93
Price to free cash flow 10.61 15.93 13.52
EV/EBITDA 7.52 17.30 9.79
EV/Sales 2.89 4.11 1.35
Earnings yield (11.80%) 4.79% 2.99%
Free cash flow yield 9.43% 6.28% 0.07%

Profitability

Metric FISV IBM Information Technology Services median
Gross margin 53.91% 57.96% 30.04%
Operating margin (10.91%) 16.17% 1.67%
Net margin (18.90%) 15.99% 0.79%
Free cash flow margin 15.18% 21.07% 0.00%
Return on equity (31.25%) 34.80% 0.00%
Return on assets (5.18%) 7.41% 0.00%
Return on invested capital (2.98%) 7.94% 0.00%

Growth

Metric FISV IBM Information Technology Services median
Revenue growth (TTM) (1.71%) 6.83% 4.85%
EPS growth (last fiscal year) 17.84% 73.72% 3.57%
Revenue growth, 5-year CAGR 7.37% 4.12% 6.93%
Net income growth, 5-year CAGR 29.43% 13.64% 0.00%

Health

Metric FISV IBM Information Technology Services median
Debt to equity 1.28 1.76 0.31
Current ratio 1.04 0.85 1.70
Net debt to EBITDA 3.12 2.95 0.55

Dividend

Metric FISV IBM Information Technology Services median
Dividend yield — 2.72% 1.95%
Payout ratio — 0.57 0.29

Size

Metric FISV IBM Information Technology Services median
Market cap 33.36b 233.55b 1.11b

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