Contrasting Fidelity National Information Services (NYSE:FIS) & Neostellar Capital (NASDAQ:NSLR)

Fidelity National Information Services (NYSE:FIS) and Neostellar Capital (NASDAQ:NSLR) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Dividends

Fidelity National Information Services pays an annual dividend of $1.76 per share and has a dividend yield of 4.9%. Neostellar Capital pays an annual dividend of $0.25 per share and has a dividend yield of 3.7%. Fidelity National Information Services pays out 27.0% of its earnings in the form of a dividend. Neostellar Capital pays out 6.2% 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. Fidelity National Information Services has increased its dividend for 1 consecutive years. Fidelity National Information Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

96.2% of Fidelity National Information Services shares are held by institutional investors. Comparatively, 12.9% of Neostellar Capital shares are held by institutional investors. 0.3% of Fidelity National Information Services shares are held by insiders. Comparatively, 8.3% of Neostellar Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fidelity National Information Services	27.64%	20.95%	8.13%
Neostellar Capital	6,053.56%	-12.63%	-10.14%

Valuation & Earnings

This table compares Fidelity National Information Services and Neostellar Capital”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	$10.68 billion	1.75	$382.00 million	$6.51	5.55
Neostellar Capital	$157.82 million	1.15	$48.81 million	$4.03	1.70

Fidelity National Information Services has higher revenue and earnings than Neostellar Capital. Neostellar Capital 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 Ratings

This is a breakdown of recent ratings and recommmendations for Fidelity National Information Services and Neostellar Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Information Services	2	12	11	0	2.36
Neostellar Capital	0	1	4	1	3.00

Fidelity National Information Services currently has a consensus price target of $49.92, indicating a potential upside of 38.07%. Neostellar Capital has a consensus price target of $14.25, indicating a potential upside of 108.33%. Given Neostellar Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Neostellar Capital is more favorable than Fidelity National Information Services.

Volatility and Risk

Fidelity National Information Services has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Neostellar Capital has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Summary

Fidelity National Information Services beats Neostellar Capital on 11 of the 18 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 Neostellar Capital

SuRo Capital Corp. is a business development company. The firm seeks to invest in growing, late stage, venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California.