Head to Head Review: Evertec (EVTC) vs. Its Rivals

Evertec (NYSE: EVTC) is one of 187 public companies in the “IT Services & Consulting” industry, but how does it compare to its competitors? We will compare Evertec to similar companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

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.

Profitability

This table compares Evertec and its competitors’ 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 -20.17% -269.41% -4.59%

Insider and Institutional Ownership

79.3% of Evertec shares are held by institutional investors. Comparatively, 62.3% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.4% of Evertec shares are held by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Evertec and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Evertec $389.51 million $75.03 million 15.57
Evertec Competitors $2.81 billion $293.37 million 338.01

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

Analyst Recommendations

This is a summary of recent ratings for Evertec and its competitors, 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 731 4677 7444 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 2.93%. Given Evertec’s higher possible upside, equities analysts plainly believe Evertec is more favorable than its competitors.

Risk & Volatility

Evertec has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Evertec’s competitors have a beta of 1.16, indicating that their average share price is 16% more volatile than the S&P 500.

Summary

Evertec competitors beat Evertec on 9 of the 15 factors compared.

Evertec Company Profile

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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