Analyzing Acacia Research (NASDAQ:ACTG) and Fiserv (NASDAQ:FISV)

Acacia Research (NASDAQ:ACTG) and Fiserv (NASDAQ:FISV) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Acacia Research and Fiserv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acacia Research	-6.52%	1.68%	1.24%
Fiserv	-18.91%	15.76%	5.02%

Earnings and Valuation

This table compares Acacia Research and Fiserv”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acacia Research	$285.23 million	1.43	$21.68 million	($0.18)	-23.17
Fiserv	$21.19 billion	1.59	$3.48 billion	($7.42)	-8.53

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

Risk & Volatility

Acacia Research has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Fiserv has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Acacia Research and Fiserv, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acacia Research	1	0	1	0	2.00
Fiserv	4	20	6	0	2.07

Acacia Research currently has a consensus target price of $6.00, suggesting a potential upside of 43.88%. Fiserv has a consensus target price of $64.26, suggesting a potential upside of 1.48%. Given Acacia Research’s higher possible upside, equities research analysts clearly believe Acacia Research is more favorable than Fiserv.

Insider and Institutional Ownership

86.7% of Acacia Research shares are owned by institutional investors. Comparatively, 91.0% of Fiserv shares are owned by institutional investors. 1.7% of Acacia Research shares are owned by company insiders. Comparatively, 0.1% of Fiserv 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.

Summary

Fiserv beats Acacia Research on 10 of the 14 factors compared between the two stocks.

About Acacia Research

Acacia Research Corporation is an investment and intellectual property company headquartered in Irvine, California. The company acquires businesses, assets and patent portfolios that it believes have the potential to generate value through licensing, monetization, operational improvement or strategic transactions. Historically, Acacia has been primarily known for its patent licensing business. Through subsidiaries and affiliated entities, it has acquired rights to patented technologies, worked with inventors and patent owners, and pursued licensing agreements with companies that use those technologies.

About Fiserv

Fiserv is a financial technology company that provides payment and financial services technology to banks, credit unions, businesses and merchants. Its offerings include payment processing, digital banking, account processing, debit and credit card services, and tools that help financial institutions manage customer accounts and transactions. For merchants, Fiserv offers Clover, a platform that combines point-of-sale hardware and software with payment acceptance and business management tools. The company also provides services for processing digital and in-person payments and supporting commerce across multiple channels.