Reviewing Marqeta (NASDAQ:MQ) & Fidelity National Information Services (NYSE:FIS)

Fidelity National Information Services (NYSE:FIS) and Marqeta (NASDAQ:MQ) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Volatility and Risk

Fidelity National Information Services has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Marqeta has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Institutional & Insider Ownership

96.2% of Fidelity National Information Services shares are owned by institutional investors. Comparatively, 78.6% of Marqeta shares are owned by institutional investors. 0.2% of Fidelity National Information Services shares are owned by insiders. Comparatively, 12.6% of Marqeta shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Fidelity National Information Services and Marqeta”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity National Information Services	$10.13 billion	3.44	$1.45 billion	$0.18	370.58
Marqeta	$506.99 million	4.52	$27.29 million	($0.13)	-39.31

Fidelity National Information Services has higher revenue and earnings than Marqeta. Marqeta is trading at a lower price-to-earnings ratio than Fidelity National Information Services, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Fidelity National Information Services and Marqeta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Information Services	2	6	13	0	2.52
Marqeta	1	10	3	0	2.14

Fidelity National Information Services currently has a consensus target price of $91.00, indicating a potential upside of 36.42%. Marqeta has a consensus target price of $6.07, indicating a potential upside of 18.75%. Given Fidelity National Information Services’ stronger consensus rating and higher probable upside, analysts clearly believe Fidelity National Information Services is more favorable than Marqeta.

Profitability

This table compares Fidelity National Information Services and Marqeta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity National Information Services	1.09%	18.73%	8.58%
Marqeta	-11.69%	-6.45%	-4.73%

Summary

Fidelity National Information Services beats Marqeta on 11 of the 14 factors compared between the two stocks.

About Fidelity National Information Services

Fidelity National Information Services, Inc. engages in the provision of financial services technology solutions for financial institutions, businesses, and developers worldwide. It operates through Banking Solutions, Capital Market Solutions, and Corporate and Other segments. The company provides core processing and ancillary applications; mobile and online banking; fraud, risk management, and compliance; card and retail payment; electronic funds transfer and network; wealth and retirement; and item processing and output solutions. It also offers trading and asset, lending, leveraged and syndicated loan markets, and treasury and risk solutions. The company was founded in 1968 and is headquartered in Jacksonville, Florida.

About Marqeta

Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.