WNS (NYSE:WNS) and Fidelity National Information Servcs (NYSE:FIS) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
This table compares WNS and Fidelity National Information Servcs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity National Information Servcs||1.45%||7.89%||4.40%|
Valuation & Earnings
This table compares WNS and Fidelity National Information Servcs’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WNS||$928.30 million||2.24||$116.77 million||$2.54||16.43|
|Fidelity National Information Servcs||$10.33 billion||8.16||$298.00 million||$5.61||24.33|
Fidelity National Information Servcs has higher revenue and earnings than WNS. WNS is trading at a lower price-to-earnings ratio than Fidelity National Information Servcs, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
WNS has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Fidelity National Information Servcs has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.
This is a summary of current ratings and target prices for WNS and Fidelity National Information Servcs, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity National Information Servcs||0||4||21||1||2.88|
WNS currently has a consensus target price of $59.70, suggesting a potential upside of 43.06%. Fidelity National Information Servcs has a consensus target price of $152.75, suggesting a potential upside of 11.90%. Given WNS’s stronger consensus rating and higher possible upside, equities analysts plainly believe WNS is more favorable than Fidelity National Information Servcs.
Institutional & Insider Ownership
95.2% of WNS shares are held by institutional investors. Comparatively, 89.5% of Fidelity National Information Servcs shares are held by institutional investors. 0.7% of Fidelity National Information Servcs shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Fidelity National Information Servcs beats WNS on 8 of the 15 factors compared between the two stocks.
WNS Company Profile
WNS (Holdings) Limited, a business process management company, together with its subsidiaries, provides data, voice, analytical, and business transformation services worldwide. It operates through two segments, WNS Global BPM and WNS Auto Claims BPM. The company offers industry-specific services to clients primarily in insurance; travel and leisure; diversified businesses, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunication; utilities; consulting and professional services; healthcare; banking and financial services; and shipping and logistics industries. It also provides shared services, such as customer interaction, finance and accounting, research and analytics, technology, legal, and human resources outsourcing services. In addition, the company offers transformation services designed to help its clients to modify their business processes to enhance productivity, as well as manage changes in the business environment and leverage business knowledge to increase market competitiveness. Further, it provides claims handling and repair management services for automobile repairs through a network of third party repair centers; and a suite of accident management services, such as credit hire and credit repair. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.
Fidelity National Information Servcs Company Profile
Fidelity National Information Services, Inc. operates as a financial services technology company in the United States and internationally. It operates through Integrated Financial Solutions and Global Financial Solutions segments. The Integrated Financial Solutions segment offers core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail solutions; corporate liquidity and wealth management services; item processing and output services; government payments solutions; and e-payment solutions. The Global Financial Solutions segment securities processing and finance, global trading, asset management and insurance, and retail banking and payment services. The company was founded in 1968 and is headquartered in Jacksonville, Florida.
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