Evertec (NYSE: EVTC) is one of 184 public companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare Evertec to related businesses based on the strength of its institutional ownership, earnings, profitability, risk, valuation, analyst recommendations and dividends.

Institutional & Insider Ownership

79.4% of Evertec shares are owned by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 1.4% of Evertec shares are owned by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Evertec and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evertec 0 4 1 0 2.20
Evertec Competitors 728 4641 7395 169 2.54

Evertec presently has a consensus price target of $17.80, suggesting a potential upside of 29.93%. As a group, “IT Services & Consulting” companies have a potential upside of 2.89%. Given Evertec’s higher probable upside, equities research analysts clearly believe Evertec is more favorable than its peers.

Risk and Volatility

Evertec has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Evertec’s peers have a beta of 1.14, suggesting that their average share price is 14% more volatile than the S&P 500.

Dividends

Evertec pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. Evertec pays out 45.5% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.6% and pay out 37.7% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Evertec and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Evertec $389.51 million $75.03 million 15.57
Evertec Competitors $2.79 billion $289.83 million 340.80

Evertec’s peers have higher revenue and earnings than Evertec. Evertec is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Evertec and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Evertec 15.92% 95.54% 13.45%
Evertec Competitors -19.46% -251.42% -3.33%

Summary

Evertec peers beat Evertec on 8 of the 15 factors compared.

About Evertec

EVERTEC, Inc. is a transaction processing company. The Company provides a range of merchant acquiring, payment processing and business process management services. The Company operates through three segments: Merchant Acquiring, Payment Processing and Business Solutions. As of December 31, 2016, it managed a system of electronic payment networks that processed over two billion transactions annually. It offers a range of services for core bank processing, cash processing and technology outsourcing. It owns and operates the ATH network, which is a personal identification number (PIN) debit network in Latin America. It serves a range of financial institutions, merchants, corporations and government agencies with solutions that enable them to issue, process and accept transactions securely. The Company’s range of services spans the entire transaction processing value chain and includes a range of front-end customer-facing solutions.

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