XBP Europe (NASDAQ:XBP) vs. Fidelity National Information Services (NYSE:FIS) Financial Analysis

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

Insider and Institutional Ownership

96.2% of Fidelity National Information Services shares are owned by institutional investors. Comparatively, 15.7% of XBP Europe shares are owned by institutional investors. 0.2% of Fidelity National Information Services shares are owned by company insiders. Comparatively, 82.5% of XBP Europe shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Information Services	1	9	12	0	2.50
XBP Europe	0	0	0	0	0.00

Fidelity National Information Services presently has a consensus target price of $91.50, indicating a potential upside of 6.71%. Given Fidelity National Information Services’ stronger consensus rating and higher possible upside, analysts clearly believe Fidelity National Information Services is more favorable than XBP Europe.

Risk & Volatility

Fidelity National Information Services has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, XBP Europe has a beta of -0.32, meaning that its share price is 132% less volatile than the S&P 500.

Valuation & Earnings

This table compares Fidelity National Information Services and XBP Europe”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity National Information Services	$9.82 billion	4.70	-$6.65 billion	$2.51	34.16
XBP Europe	$166.57 million	0.23	-$11.05 million	N/A	N/A

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fidelity National Information Services	14.37%	15.35%	6.79%
XBP Europe	-9.50%	N/A	-14.57%

Summary

Fidelity National Information Services beats XBP Europe on 10 of the 12 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 XBP Europe

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.