Financial Review: ACV Auctions (NASDAQ:ACVA) vs. Fiserv (NYSE:FI)

ACV Auctions (NASDAQ:ACVA) and Fiserv (NYSE:FI) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Earnings & Valuation

This table compares ACV Auctions and Fiserv”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACV Auctions	$596.02 million	5.91	-$75.26 million	($0.47)	-44.72
Fiserv	$383.42 million	309.48	$3.07 billion	$5.20	40.11

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

Volatility and Risk

ACV Auctions has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Institutional & Insider Ownership

88.6% of ACV Auctions shares are owned by institutional investors. Comparatively, 91.0% of Fiserv shares are owned by institutional investors. 8.5% of ACV Auctions shares are owned by company insiders. Comparatively, 0.8% of Fiserv shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares ACV Auctions and Fiserv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ACV Auctions	-12.89%	-12.11%	-5.52%
Fiserv	15.22%	17.10%	5.61%

Analyst Recommendations

This is a summary of current ratings and recommmendations for ACV Auctions and Fiserv, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACV Auctions	0	2	8	0	2.80
Fiserv	0	3	21	2	2.96

ACV Auctions presently has a consensus target price of $23.80, suggesting a potential upside of 13.23%. Fiserv has a consensus target price of $222.88, suggesting a potential upside of 6.86%. Given ACV Auctions’ higher possible upside, equities research analysts plainly believe ACV Auctions is more favorable than Fiserv.

Summary

Fiserv beats ACV Auctions on 11 of the 15 factors compared between the two stocks.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company’s marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green’s seller assurance service for against claims related to defects in the vehicle. It also provides remarketing centers, which offers value-added services, such as vehicle reconditioning and storage for dealers and commercial partners. In addition, the company offers data services, including True360 report, which provides cosmetic and structural vehicle assessments integrated into vehicle history reports for dealer to make wholesale and retail transaction decisions on and off the marketplace; ACV market report provides transaction data and condition reports for comparable used vehicles, including pricing data from third-party sources and allows dealers to determine pricing and valuation strategies for used vehicles; and ACV MAX inventory management software enables dealers to manage their inventory and set pricing while turning vehicles. Further, it provides data and technology through inspection, such as condition reports, virtual lift solutions, apex device, and vehicle intelligence platform; and marketplace enablement, comprising MyACV application, private marketplaces, operations automation, live appraisals, and programmatic buying service. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.

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.