NCR Corporation (NYSE: NCR) and Evertec (NYSE:EVTC) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Dividends

Evertec pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. NCR Corporation does not pay a dividend. Evertec pays out 45.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares NCR Corporation and Evertec’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
NCR Corporation $6.54 billion 0.58 $270.00 million $1.65 18.84
Evertec $389.51 million 2.58 $75.03 million $0.88 15.80

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

Volatility and Risk

NCR Corporation has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Evertec has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for NCR Corporation and Evertec, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NCR Corporation 0 2 6 0 2.75
Evertec 0 4 1 0 2.20

NCR Corporation presently has a consensus target price of $47.57, indicating a potential upside of 53.01%. Evertec has a consensus target price of $17.80, indicating a potential upside of 28.06%. Given NCR Corporation’s stronger consensus rating and higher probable upside, equities analysts plainly believe NCR Corporation is more favorable than Evertec.

Profitability

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

Net Margins Return on Equity Return on Assets
NCR Corporation 5.11% 84.72% 7.25%
Evertec 15.92% 95.54% 13.45%

Insider and Institutional Ownership

89.2% of NCR Corporation shares are owned by institutional investors. Comparatively, 79.9% of Evertec shares are owned by institutional investors. 1.0% of NCR Corporation shares are owned by insiders. Comparatively, 1.4% of Evertec shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

NCR Corporation beats Evertec on 10 of the 16 factors compared between the two stocks.

NCR Corporation Company Profile

NCR Corporation is a provider of Omni-channel technology solutions that enable businesses connect, interact and transact with their customers. The Company operates through three segments: Software, Services and Hardware. It sells a portfolio of hardware, software and services that combine to provide businesses with solutions. Its portfolio of self-service and assisted-service solutions are designed to allow businesses in the financial services, retail, hospitality, travel and telecommunications and technology industries to deliver an experience to consumers across physical and digital commerce channels. Its offerings include automated teller machines, point of sale terminals and devices, self-service kiosks, Omni-channel platform software and other software applications, and a suite of consulting, implementation, maintenance and managed services. It provides solutions for a range of industries, such as financial services, hospitality, travel and telecommunications, and technology.

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.

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