Analyzing Evertec (NYSE:EVTC) & Tron (NASDAQ:TRON)

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

Valuation and Earnings

This table compares Tron and Evertec”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tron	$5.06 million	114.35	-$16.81 million	($0.11)	-11.09
Evertec	$931.82 million	1.98	$141.59 million	$1.54	20.03

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tron and Evertec, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tron	1	0	0	0	1.00
Evertec	0	4	2	0	2.33

Evertec has a consensus price target of $35.00, suggesting a potential upside of 13.49%. Given Evertec’s stronger consensus rating and higher possible upside, analysts plainly believe Evertec is more favorable than Tron.

Institutional & Insider Ownership

28.0% of Tron shares are owned by institutional investors. Comparatively, 96.8% of Evertec shares are owned by institutional investors. 86.2% of Tron shares are owned by insiders. Comparatively, 1.1% of Evertec shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Tron has a beta of 8.69, meaning that its stock price is 769% more volatile than the S&P 500. Comparatively, Evertec has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tron	135.58%	-5.60%	-5.53%
Evertec	9.80%	32.07%	9.12%

Summary

Evertec beats Tron on 10 of the 14 factors compared between the two stocks.

About Tron

SRM Entertainment, Inc. designs, manufactures, and sells toys and souvenirs to theme parks. It sells its products through amusement parks, entertainment venues, and theme hotels in the United States, China, Japan, and internationally. The company was incorporated in 2022 and is based in Jupiter, Florida.

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.