Contrasting Flywire (NASDAQ:FLYW) and Evertec (NYSE:EVTC)

Flywire (NASDAQ:FLYW) and Evertec (NYSE:EVTC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Earnings & Valuation

This table compares Flywire and Evertec”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flywire	$623.03 million	3.60	$13.50 million	$0.26	70.85
Evertec	$931.82 million	1.91	$141.59 million	$1.54	19.38

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flywire	4.77%	4.08%	2.81%
Evertec	9.80%	32.07%	9.12%

Risk & Volatility

Flywire has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Evertec has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Flywire and Evertec, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flywire	0	7	8	0	2.53
Evertec	0	4	2	0	2.33

Flywire presently has a consensus target price of $20.23, indicating a potential upside of 9.83%. Evertec has a consensus target price of $35.00, indicating a potential upside of 17.27%. Given Evertec’s higher possible upside, analysts plainly believe Evertec is more favorable than Flywire.

Institutional & Insider Ownership

95.9% of Flywire shares are owned by institutional investors. Comparatively, 96.8% of Evertec shares are owned by institutional investors. 5.0% of Flywire shares are owned by insiders. Comparatively, 1.1% of Evertec shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Evertec beats Flywire on 8 of the 14 factors compared between the two stocks.

About Flywire

Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company’s platform facilitates payment flows across multiple currencies, payment types, and payment options, as well as provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. The company was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.

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.