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How Does Total System Services Compare to Its Peers?

Gabriel Kane

US Equity Market Update: October 27, 2015

(Continued from Prior Part)

Total System Services and its peers

In this part of the series, we’ll compare Total System Services (TSS) to its industry peers.

  • The PE (price-to-earnings) ratios of Total System Services (TSS), Fiserv (FISV), Fidelity National Information Services (FIS), Vantiv (VNTV), and Blackhawk Network Holdings (HAWK) are 29.18x, 32.46x, 28.62x, 51.64x, and 49.58x, respectively.

  • The PBV (price-to-book value) ratios of Total System, Fiserv, Fidelity, Vantiv, and Blackhawk are 5.30x, 7.18x, 3.10x, 7.00x, and 3.33x, respectively.
  • The PS (price-to-sales) ratios of Total System, Fiserv, Fidelity, Vantiv, and Blackhawk are 3.64x, 4.35x, 3.21x, 3.04x, and 1.34x, respectively.

According to the above figures, the peers have outperformed Total System Services based on PE. However, Total System Services is way ahead of its peers based on PS.

ETFs that invest in Total System Services

The PowerShares DWA Financial Momentum ETF (PFI) invests 2.8% of its holdings in Total System. The ETF tracks an index of US financial firms selected and weighted by price momentum.

The Guggenheim S&P 500 Equal Weight Technology ETF (RYT) invests 1.8% of its holdings in Total System. The ETF tracks an equal-weighted index of S&P 500 technology companies.

The First Trust Large Cap Growth AlphaDEX ETF (FTC) invests 1.1% of its holdings in Total System. The ETF tracks the Defined Large Cap Growth Index. The alpha-seeking index selects and weights growth stocks from the S&P 500 Growth Index using a proprietary methodology.

Total System Services compared to its ETFs

Now let’s look at Total System Services compared to its ETFs.

  • The year-to-date price movements of Total System, PFI, RYT, and FTC are 53.2%, 2.4%, 3.8%, and 5.0%, respectively.
  • The PE (price-to-earnings) ratios of Total System, PFI, RYT, and FTC are 29.18x, 16.45x, 18.55x, and 25.61x, respectively.
  • The PBV (price-to-book value) ratios of Total System, PFI, RYT, and FTC are 5.30x, 2.49x, 2.94x, and 4.46x, respectively.

Total System Services has outperformed its ETFs based on price movement, PE, and PBV.

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