Viad (NYSE:VVI) versus Fidelity National Information Services (NYSE:FIS) Head-To-Head Analysis

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Fidelity National Information Services and Viad, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Information Services	0	9	12	1	2.64
Viad	0	0	2	0	3.00

Fidelity National Information Services currently has a consensus target price of $80.65, indicating a potential downside of 2.41%. Viad has a consensus target price of $41.50, indicating a potential upside of 24.14%. Given Viad’s stronger consensus rating and higher possible upside, analysts clearly believe Viad is more favorable than Fidelity National Information Services.

Insider and Institutional Ownership

96.2% of Fidelity National Information Services shares are owned by institutional investors. Comparatively, 89.9% of Viad shares are owned by institutional investors. 0.2% of Fidelity National Information Services shares are owned by insiders. Comparatively, 4.1% of Viad shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Fidelity National Information Services has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Viad has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500.

Dividends

Fidelity National Information Services pays an annual dividend of $1.44 per share and has a dividend yield of 1.7%. Viad pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Fidelity National Information Services pays out -14.1% of its earnings in the form of a dividend. Viad pays out -105.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Fidelity National Information Services and Viad’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity National Information Services	$9.96 billion	4.62	-$6.65 billion	($10.23)	-8.08
Viad	$1.31 billion	0.54	$16.02 million	($0.38)	-87.97

Viad has lower revenue, but higher earnings than Fidelity National Information Services. Viad 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fidelity National Information Services	7.72%	13.63%	5.61%
Viad	2.30%	29.43%	3.10%

Summary

Fidelity National Information Services beats Viad on 9 of the 17 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 Viad

Viad Corp provides hospitality, leisure activities, experiential marketing, and live events in the United States, Canada, Europe, the Middle East, and Africa. It operates in three segments: Pursuit, Spiro, and GES Exhibitions. The Pursuit segment offers recreational attractions, hotels and lodges, food and beverage, retail, sightseeing, and ground transportation services. This segment consists of Banff Jasper Collection, the Alaska Collection, the Glacier Park Collection, FlyOver, and Sky Lagoon. The Spiro segment operates as an experiential marketing agency that partners with brands around the world to manage and elevate their global experiential marketing activities. The GES Exhibition segment engages as an exhibition services company that partners with exhibition and conference organizers as a full-service provider of strategic and logistics solutions to manage the complexity of their shows. It serves event organizers and corporate brand marketers; and tour operators, tour wholesalers, destination management companies, and retail travel agencies. Viad Corp was founded in 1926 and is headquartered in Scottsdale, Arizona.