Evertec (NYSE: EVTC) is one of 184 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare Evertec to related companies based on the strength of its risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Earnings and Valuation

This table compares Evertec and its peers gross 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 298.65

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

Volatility & Risk

Evertec has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Evertec’s peers 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 peers’ 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 -19.39% -251.15% -3.24%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Evertec and its peers, 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 729 4652 7406 166 2.54

Evertec currently has a consensus target price of $17.80, suggesting a potential upside of 32.84%. As a group, “IT Services & Consulting” companies have a potential upside of 3.15%. Given Evertec’s higher probable upside, equities analysts clearly believe Evertec is more favorable than its peers.

Insider and Institutional Ownership

79.4% of Evertec shares are held by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.4% of Evertec shares are held by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

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.

Summary

Evertec peers 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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