WallStSmart

Fidelity National Information Services Inc (FIS)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fidelity National Information Services Inc generates 331% more annual revenue ($10.68B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 3.6%. FIS appears more attractively valued with a PEG of 0.26. FIS earns a higher WallStSmart Score of 67/100 (B-).

FIS

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 5.5Value: 6.7Quality: 4.0
Piotroski: 5/9Altman Z: -0.02

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 7.5Value: 6.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FISUndervalued (+24.1%)

Margin of Safety

+24.1%

Fair Value

$63.64

Current Price

$45.97

$17.67 discount

UndervaluedFair: $63.64Overvalued
WTRGUndervalued (+47.4%)

Margin of Safety

+47.4%

Fair Value

$71.13

Current Price

$37.54

$33.59 discount

UndervaluedFair: $71.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FIS4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2610/10

Growing faster than its price suggests

EPS GrowthGrowth
88.1%10/10

Earnings expanding 88.1% YoY

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

WTRG5 strengths · Avg: 8.6/10
Operating MarginProfitability
32.4%10/10

Strong operational efficiency at 32.4%

Profit MarginProfitability
24.9%9/10

Keeps 25 of every $100 in revenue as profit

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

Areas to Watch

FIS4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

P/E RatioValuation
63.8x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
-0.022/10

Distress zone — elevated risk

WTRG4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.622/10

Expensive relative to growth rate

EPS GrowthGrowth
-30.0%2/10

Earnings declined 30.0%

Free Cash FlowQuality
$-240.78M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : FIS

The strongest argument for FIS centers on PEG Ratio, EPS Growth, Price/Book. PEG of 0.26 suggests the stock is reasonably priced for its growth.

Bull Case : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.

Bear Case : FIS

The primary concerns for FIS are Return on Equity, Profit Margin, P/E Ratio. A P/E of 63.8x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.

Bear Case : WTRG

The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

FIS profiles as a value stock while WTRG is a growth play — different risk/reward profiles.

FIS carries more volatility with a beta of 0.91 — expect wider price swings.

WTRG is growing revenue faster at 15.7% — sustainability is the question.

FIS generates stronger free cash flow (779M), providing more financial flexibility.

Bottom Line

FIS scores higher overall (67/100 vs 60/100). WTRG offers better value entry with a 47.4% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Fidelity National Information Services Inc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

FIS is an American Fortune 500 company which offers a wide range of financial products and services. Headquartered in Jacksonville, Florida, FIS employs approximately 63,000 people worldwide. FIS is most known for its development of Financial Technology, or FinTech, and as of Q2 2020 it offers its solutions in three primary segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions.

Essential Utilities Inc

UTILITIES · UTILITIES - REGULATED WATER · USA

Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.

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