Head to Head Analysis: Fiverr International (NYSE:FVRR) versus Shift4 Payments (NYSE:FOUR)

Fiverr International (NYSE:FVRR) and Shift4 Payments (NYSE:FOUR) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Valuation & Earnings

This table compares Fiverr International and Shift4 Payments’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fiverr International	$361.38 million	2.36	$3.68 million	$0.22	100.50
Shift4 Payments	$2.56 billion	2.34	$86.20 million	$1.49	45.94

Shift4 Payments has higher revenue and earnings than Fiverr International. Shift4 Payments is trading at a lower price-to-earnings ratio than Fiverr International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fiverr International and Shift4 Payments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fiverr International	2.38%	4.87%	1.63%
Shift4 Payments	3.38%	25.21%	5.83%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Fiverr International and Shift4 Payments, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fiverr International	0	4	7	0	2.64
Shift4 Payments	0	3	15	0	2.83

Fiverr International currently has a consensus target price of $33.09, indicating a potential upside of 49.66%. Shift4 Payments has a consensus target price of $84.22, indicating a potential upside of 23.04%. Given Fiverr International’s higher probable upside, equities research analysts clearly believe Fiverr International is more favorable than Shift4 Payments.

Insider and Institutional Ownership

59.0% of Fiverr International shares are held by institutional investors. Comparatively, 98.9% of Shift4 Payments shares are held by institutional investors. 15.9% of Fiverr International shares are held by insiders. Comparatively, 30.6% of Shift4 Payments shares are held by 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.

Risk & Volatility

Fiverr International has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Shift4 Payments has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.

Summary

Shift4 Payments beats Fiverr International on 10 of the 14 factors compared between the two stocks.

About Fiverr International

Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company's platform includes various categories in ten verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and tech, business, data, lifestyle, and photography. It also offers value-added products, including subscription-based content marketing, back-office, learning and development offerings, creative talent, and freelancer management platforms. In addition, the company provides a suite of professional solutions that enable businesses to engage with freelancers; Fiverr Pro, a marketplace; Fiverr Certified, a storefront to access certified experts for partner vendors; Fiverr Enterprise, a gateway to source and manage on-demand and long-term freelancers. Further, it offers various value-added products, including Promoted Gigs which allows sellers to advertise their services on the platform; and Seller Plus, a subscription program that equips sellers with advanced tools. The company's buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and agencies. Fiverr International Ltd. was incorporated in 2010 and is headquartered in Tel Aviv, Israel.

About Shift4 Payments

Shift4 Payments, Inc. (NYSE FOUR) provides integrated payment processing and technology solutions in the United States. Its payments platform provides omni-channel card acceptance and processing solutions, including end-to-end payment processing for various payment types; merchant acquiring; proprietary omni-channel gateway; complementary software integrations; integrated and mobile point-of-sale (POS) solutions; security and risk management solutions; and reporting and analytical tools, as well as tokenization, risk management/underwriting, payment device and chargeback management, fraud prevention, and gift card solutions. The company also offers suite of technology solutions, such as Lighthouse, a cloud-based business intelligence tool that includes customer engagement, social media management, online reputation management, scheduling, and product pricing, as well as reporting and analytics; integrated POS for merchants business; and Skytab, a mobile payment solution. In addition, it provides marketplace technology that enable seamless integrations into third-party applications, which includes online delivery services, payroll, timekeeping, and other human resource services. Further, the company offers merchant management, training and education, marketing management, and incentives tracking solutions. Additionally, it provides merchant underwriting, onboarding and activation, training, risk management, and support services; and software integrations and compliance management, and partner support and services. The company was founded in 1998 and is headquartered in Allentown, Pennsylvania.