Comparing Fiserv (NASDAQ:FISV) & Neostellar Capital (NASDAQ:NSLR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Neostellar Capital	6,053.56%	-12.63%	-10.14%
Fiserv	13.42%	15.80%	5.12%

Volatility and Risk

Neostellar Capital has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Neostellar Capital and Fiserv, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neostellar Capital	0	1	4	1	3.00
Fiserv	4	25	6	0	2.06

Neostellar Capital presently has a consensus target price of $14.50, indicating a potential upside of 92.54%. Fiserv has a consensus target price of $73.70, indicating a potential upside of 62.01%. Given Neostellar Capital’s stronger consensus rating and higher possible upside, research analysts clearly believe Neostellar Capital is more favorable than Fiserv.

Valuation & Earnings

This table compares Neostellar Capital and Fiserv”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neostellar Capital	$1.69 million	117.96	$48.81 million	$4.03	1.87
Fiserv	$20.87 billion	1.16	$3.48 billion	$5.21	8.73

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

Institutional and Insider Ownership

13.0% of Neostellar Capital shares are owned by institutional investors. Comparatively, 91.0% of Fiserv shares are owned by institutional investors. 8.3% of Neostellar Capital shares are owned by company insiders. Comparatively, 0.1% of Fiserv shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Fiserv beats Neostellar Capital on 8 of the 15 factors compared between the two stocks.

About Neostellar Capital

SuRo Capital Corp. is a business development company. The firm seeks to invest in growing, late stage, venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California.

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.