Everi Holdings (NYSE: EVRI) and Genpact Limited (NYSE:G) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Dividends

Genpact Limited pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Everi Holdings does not pay a dividend. Genpact Limited pays out 18.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations for Everi Holdings and Genpact Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everi Holdings 0 0 3 0 3.00
Genpact Limited 0 2 5 0 2.71

Everi Holdings presently has a consensus target price of $7.00, suggesting a potential downside of 9.33%. Genpact Limited has a consensus target price of $31.67, suggesting a potential upside of 8.34%. Given Genpact Limited’s higher possible upside, analysts clearly believe Genpact Limited is more favorable than Everi Holdings.

Institutional & Insider Ownership

85.4% of Everi Holdings shares are held by institutional investors. Comparatively, 92.2% of Genpact Limited shares are held by institutional investors. 4.5% of Everi Holdings shares are held by company insiders. Comparatively, 1.6% of Genpact Limited shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Everi Holdings has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Genpact Limited has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares Everi Holdings and Genpact Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everi Holdings -26.95% -16,159.62% -16.89%
Genpact Limited 10.22% 23.33% 9.85%

Earnings & Valuation

This table compares Everi Holdings and Genpact Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Everi Holdings $919.45 million 0.56 $200.09 million ($3.75) -2.06
Genpact Limited $2.62 billion 2.15 $438.33 million $1.33 21.98

Genpact Limited has higher revenue and earnings than Everi Holdings. Everi Holdings is trading at a lower price-to-earnings ratio than Genpact Limited, indicating that it is currently the more affordable of the two stocks.

Summary

Genpact Limited beats Everi Holdings on 11 of the 15 factors compared between the two stocks.

About Everi Holdings

Everi Holdings Inc. is a holding company. The Company operates through subsidiaries, including Everi Games Holding Inc. (Everi Games Holding) and Everi Payments Inc. (Everi Payments or Payments). The Company operates through two segments: Games and Payments. The Company provides video and mechanical reel gaming content and technology solutions, integrated gaming payments solutions, and compliance and efficiency software. Its games segment provides solutions directly to gaming establishments to offer its patrons gaming entertainment related experiences. The Payments segment provides solutions directly to gaming establishments to offer their patrons cash access related services and products, including access to cash at gaming facilities through automatic teller machine (ATM) cash withdrawals, credit card cash access transactions and point of sale debit card transactions.

About Genpact Limited

Genpact Limited is engaged in providing digitally powered business process management and services. The Company is also engaged in designing, transforming and running a combination of processes, as well as providing solutions that combine elements of its service offerings. The Company’s segments include Business process outsourcing and Information technology services. The Company offers various vertical activities, which include banking and financial services, capital markets, consumer product goods services, healthcare, infrastructure and manufacturing services, insurance and life sciences. In addition to these vertical activities, it also offers analytics and research, collections and customer services, consulting and transformation services, core industry operations services, enterprise application services, finance and accounting (F&A) services, information technology (IT) infrastructure management services, and supply chain and procurement services.

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