Evertec (NYSE: EVTC) and F5 Networks (NASDAQ:FFIV) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
Insider and Institutional Ownership
81.9% of Evertec shares are owned by institutional investors. Comparatively, 94.7% of F5 Networks shares are owned by institutional investors. 1.4% of Evertec shares are owned by company insiders. Comparatively, 0.3% of F5 Networks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Evertec and F5 Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Evertec and F5 Networks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Evertec presently has a consensus target price of $16.40, suggesting a potential upside of 13.10%. F5 Networks has a consensus target price of $130.67, suggesting a potential downside of 7.37%. Given Evertec’s higher possible upside, equities research analysts clearly believe Evertec is more favorable than F5 Networks.
Valuation and Earnings
This table compares Evertec and F5 Networks’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Evertec||$389.51 million||2.69||$75.03 million||$0.88||16.48|
|F5 Networks||$2.09 billion||4.22||$420.76 million||$6.51||21.67|
F5 Networks has higher revenue and earnings than Evertec. Evertec is trading at a lower price-to-earnings ratio than F5 Networks, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Evertec has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, F5 Networks has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Evertec pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. F5 Networks does not pay a dividend. Evertec pays out 34.1% of its earnings in the form of a dividend.
F5 Networks beats Evertec on 11 of the 16 factors compared between the two stocks.
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.
F5 Networks Company Profile
F5 Networks, Inc. is a developer and provider of software defined application services. The Company is engaged in the development, marketing and sale of application delivery networking products that optimize the security, performance and availability of network applications, servers and storage systems. The Company’s geographical segments include the Americas (primarily the United States); Europe, the Middle East, and Africa (EMEA); Japan, and the Asia Pacific region (APAC). The Company’s Traffic Management Operating System (TMOS) based offerings include software products for local and global traffic management, network and application security, access management, Web acceleration and various network and application services. These products are available as modules that can run individually or as part of an integrated solution on the Company’s purpose-built BIG-IP appliances and VIPRION chassis-based hardware, or as software-only Virtual Editions.
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