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.
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.
This table compares Evertec and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
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.
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 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.
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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