Evertec (NYSE: EVTC) and Infoblox (NYSE:BLOX) are both small-cap it services & consulting – nec companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.
This table compares Evertec and Infoblox’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Evertec and Infoblox, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Evertec currently has a consensus price target of $17.80, suggesting a potential upside of 28.99%. Given Evertec’s higher probable upside, equities analysts clearly believe Evertec is more favorable than Infoblox.
Insider and Institutional Ownership
79.3% of Evertec shares are held by institutional investors. Comparatively, 93.9% of Infoblox shares are held by institutional investors. 1.4% of Evertec shares are held by company insiders. Comparatively, 3.2% of Infoblox shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Evertec and Infoblox’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Evertec||$389.51 million||2.56||$75.03 million||$0.89||15.51|
Evertec has higher revenue and earnings than Infoblox. Infoblox is trading at a lower price-to-earnings ratio than Evertec, indicating that it is currently the more affordable of the two stocks.
Evertec pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. Infoblox does not pay a dividend. Evertec pays out 44.9% of its earnings in the form of a dividend.
Evertec beats Infoblox on 9 of the 12 factors compared between the two stocks.
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.
Infoblox Inc. (Infoblox) is a United States-based company, which delivers Actionable Network Intelligence to enterprise, government and service provider customers across the world. The Company’s products include core network services, such as domain name system (DNS), dynamic host configuration protocol (DHCP), Internet protocol address manager (IPAM) data documentation initiative (DDI); Private Cloud/Virtualization; Public/Hybrid Cloud; Reporting and Analytics, and Network Insight. Its products also include DNS, such as DNS Firewall, Advanced DNS Protection, Threat Insight and Active Trust, and network automation, such as NetMRI. Its solutions include information technology (IT) compliance and digital economy. It offers solutions for Microsoft and Infoblox, Internet protocol version 6 (IPv6) readiness and cybersecurity ecosystem. It supports offerings, such as Infoblox BloxCare Premium and Elite Maintenance programs, as well as its optional Technical Account Manager service.
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