Head-To-Head Analysis: Everi (EVRI) & G&K Services (GK)

Everi (NYSE: EVRI) and G&K Services (NASDAQ:GK) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Profitability

This table compares Everi and G&K Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everi -25.82% N/A -16.70%
G&K Services 3.79% 9.12% 4.03%

Institutional & Insider Ownership

84.0% of Everi shares are held by institutional investors. Comparatively, 88.6% of G&K Services shares are held by institutional investors. 4.5% of Everi shares are held by company insiders. Comparatively, 3.7% of G&K Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

G&K Services pays an annual dividend of $1.56 per share and has a dividend yield of 1.6%. Everi does not pay a dividend. G&K Services pays out 54.7% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Everi and G&K Services’ 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 0.61 -$249.47 million ($3.69) -2.12
G&K Services N/A N/A N/A $2.85 34.21

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Everi and G&K Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everi 0 0 3 0 3.00
G&K Services 0 0 0 0 N/A

Everi currently has a consensus price target of $7.33, indicating a potential downside of 6.22%. Given Everi’s higher possible upside, equities research analysts clearly believe Everi is more favorable than G&K Services.

Summary

G&K Services beats Everi on 7 of the 12 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.

G&K Services Company Profile

G&K Services, Inc. is a service-focused provider of branded uniform and facility services programs. The Company provides a range of workwear and protective safety apparel through rental and direct purchase programs. The Company also supplies various facility products and services, including floor mats, towels, mops, restroom hygiene products, and first aid supplies. It also manufactures certain work apparel garments that are used to support its garment rental and direct purchase programs. It operates in two segments: United States (includes the Dominican Republic) and Canada. The Company operated from approximately 160 locations, as of July 2, 2016. The Company serves a diverse base of customer locations in various industries, including automotive, warehousing, distribution, transportation, energy, manufacturing, food processing, retail, restaurants, construction and trades, hospitality, government, healthcare and others.

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