Analyzing Everi (EVRI) & The Advisory Board (ABCO)

Everi (NYSE: EVRI) and The Advisory Board (NASDAQ:ABCO) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Risk & Volatility

Everi has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, The Advisory Board has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Everi and The Advisory Board, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everi 0 0 3 0 3.00
The Advisory Board 0 11 3 0 2.21

Everi currently has a consensus price target of $7.33, indicating a potential downside of 0.36%. The Advisory Board has a consensus price target of $51.44, indicating a potential downside of 4.44%. Given Everi’s stronger consensus rating and higher probable upside, analysts plainly believe Everi is more favorable than The Advisory Board.

Valuation and Earnings

This table compares Everi and The Advisory Board’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everi $859.46 million 0.58 -$249.47 million ($3.69) -1.99
The Advisory Board $803.42 million 2.73 $91.23 million $1.74 30.94

The Advisory Board has lower revenue, but higher earnings than Everi. Everi is trading at a lower price-to-earnings ratio than The Advisory Board, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Everi and The Advisory Board’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everi -25.82% N/A -16.70%
The Advisory Board -3.42% 0.48% -1.23%

Institutional & Insider Ownership

84.0% of Everi shares are owned by institutional investors. Comparatively, 95.5% of The Advisory Board shares are owned by institutional investors. 4.5% of Everi shares are owned by insiders. Comparatively, 4.7% of The Advisory Board shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

The Advisory Board beats Everi on 10 of the 13 factors compared between the two stocks.

Everi Company Profile

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.

The Advisory Board Company Profile

The Advisory Board Company is a provider of software and solutions to the healthcare and higher education industries. The Company offers subscription-based membership programs, software and data-enabled services. All of its programs are rooted in best practices and extends across four areas, including Best practices research, Technology, Data-enabled services and Consulting services. The best practices research and insight programs provide the foundation for all of its other programs. The Company offers technology analytics programs anchored by cloud-based software applications that surface performance improvement opportunities to accelerate progress. Through its consulting services, the Company provides on-the-ground support for performance improvement initiatives, as well as best practice professional management of areas of the hospital or medical group. The Company’s data-enabled services are primarily focused in the area of enrollment management.

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