Financial Contrast: Evertec (NYSE:EVTC) & DLocal (NASDAQ:DLO)

DLocal (NASDAQ:DLO) and Evertec (NYSE:EVTC) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares DLocal and Evertec”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DLocal	$745.97 million	5.92	$120.42 million	$0.56	25.23
Evertec	$845.49 million	2.25	$112.62 million	$2.25	13.23

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

Risk and Volatility

DLocal has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Evertec has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

90.1% of DLocal shares are owned by institutional investors. Comparatively, 96.8% of Evertec shares are owned by institutional investors. 45.4% of DLocal shares are owned by insiders. Comparatively, 0.6% of Evertec shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for DLocal and Evertec, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DLocal	0	4	6	1	2.73
Evertec	0	5	3	0	2.38

DLocal currently has a consensus price target of $15.78, indicating a potential upside of 11.66%. Evertec has a consensus price target of $35.80, indicating a potential upside of 20.26%. Given Evertec’s higher possible upside, analysts plainly believe Evertec is more favorable than DLocal.

Profitability

This table compares DLocal and Evertec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DLocal	17.80%	37.66%	14.84%
Evertec	16.17%	34.79%	10.16%

Summary

DLocal beats Evertec on 11 of the 15 factors compared between the two stocks.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods. It also provides pay-out solution used for merchants to scale pay-out operations. In addition, the company offers dLocal for Platforms, an end-to-end payment solution that offers a range of services to help platforms manage payments. It serves its products to commerce, streaming, ride-hailing, financial services, advertising, SaaS, travel, e-learning, on-demand delivery, and gaming and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.

About Evertec

EVERTEC, Inc. engages in transaction processing business and financial technology in Latin America and the Caribbean. The company operates through four segments: Payment Services – Puerto Rico & Caribbean; Latin America Payments and Solutions; Merchant Acquiring; and Business Solutions. It provides merchant acquiring services, which enable point of sales and e-commerce merchants to accept and process electronic methods of payment, such as debit, credit, prepaid, and electronic benefit transfer (EBT) cards. In addition, the company offers payment processing services that enable financial institutions and other issuers to manage, support, and facilitate the processing for credit, debit, prepaid, automated teller machines, and EBT card programs; credit and debit card processing, authorization and settlement, and fraud monitoring and control services to debit or credit issuers services. Further, it provides business process management solutions comprising core bank processing, network hosting and management, IT professional, business process outsourcing, item and cash processing, and fulfillment solutions to merchant, fintech, financial institutions, and corporate and government customers. Additionally, the company owns and operates the ATH network, a personal identification number debit networks. It manages a system of electronic payment networks that process approximately six billion transactions. The company sells and distributes its services primarily through direct sales force. It serves financial institutions, merchants, corporations, and government agencies. EVERTEC, Inc. was founded in 1988 and is headquartered in San Juan, Puerto Rico.