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 $214.4B against $24.5B — 8.8× the size. Fiserv, Inc. trades at the lower P/E: 8.9× against 19.7×. International Business Machines Corporation grew revenue faster over the last twelve months: 7.90% against −1.17%. International Business Machines Corporation has the higher net margin (15.5% vs 13.4%) and the higher return on invested capital (7.86% vs 5.38%). Across the 22 metrics below, Fiserv, Inc. leads on 13 and International Business Machines Corporation on 9.

Valuation

Metric FISV IBM Information Technology Services median
P/E 8.92 19.70 14.63
P/S 1.19 3.07 1.13
P/B 0.92 6.14 2.10
Price to free cash flow 6.02 15.35 10.11
EV/EBITDA 6.52 16.31 8.56
EV/Sales 2.49 3.85 1.20
Earnings yield 11.21% 5.08% 4.56%
Free cash flow yield 16.61% 6.52% 4.37%

Profitability

Metric FISV IBM Information Technology Services median
Gross margin 55.37% 58.10% 31.05%
Operating margin 22.33% 16.08% 3.30%
Net margin 13.42% 15.52% 2.09%
Free cash flow margin 19.71% 20.02% 0.00%
Return on equity 10.63% 34.52% 4.12%
Return on assets 3.45% 7.13% 0.61%
Return on invested capital 5.38% 7.86% 0.57%

Growth

Metric FISV IBM Information Technology Services median
Revenue growth (TTM) (1.17%) 7.90% 7.12%
EPS growth (last fiscal year) 17.84% 73.72% —
Revenue growth, 5-year CAGR 7.37% 4.12% 7.71%
Net income growth, 5-year CAGR 29.43% 13.64% 0.00%

Health

Metric FISV IBM Information Technology Services median
Debt to equity 1.04 1.79 0.45
Current ratio 1.04 0.79 1.66
Net debt to EBITDA 3.12 2.95 0.44

Dividend

Metric FISV IBM Information Technology Services median
Dividend yield — 3.70% 1.21%
Payout ratio 0.00 2.81 0.00

Size

Metric FISV IBM Information Technology Services median
Market cap 24.46b 214.41b 1.36b

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