Evertec (NYSE: EVTC) is one of 183 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its rivals? We will compare Evertec to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Risk and Volatility

Evertec has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Evertec’s rivals have a beta of 1.14, indicating that their average stock price is 14% more volatile than the S&P 500.

Profitability

This table compares Evertec and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Evertec 15.92% 95.54% 13.45%
Evertec Competitors -19.66% -252.75% -3.29%

Dividends

Evertec pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. Evertec pays out 45.5% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.6% and pay out 37.7% of their earnings in the form of a dividend.

Institutional and Insider Ownership

79.4% of Evertec shares are held by institutional investors. Comparatively, 62.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.4% of Evertec shares are held by company insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Evertec and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Evertec $389.51 million $75.03 million 15.23
Evertec Competitors $2.79 billion $289.83 million 302.12

Evertec’s rivals have higher revenue and earnings than Evertec. Evertec is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Evertec and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evertec 0 4 1 0 2.20
Evertec Competitors 728 4636 7393 165 2.54

Evertec currently has a consensus target price of $17.80, indicating a potential upside of 32.84%. As a group, “IT Services & Consulting” companies have a potential upside of 3.48%. Given Evertec’s higher probable upside, analysts clearly believe Evertec is more favorable than its rivals.

Summary

Evertec rivals beat Evertec on 9 of the 15 factors compared.

About Evertec

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.

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