Evertec (NYSE:EVTC) and Expensify (NASDAQ:EXFY) Head to Head Analysis

Evertec (NYSE:EVTC) and Expensify (NASDAQ:EXFY) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Insider & Institutional Ownership

96.8% of Evertec shares are owned by institutional investors. Comparatively, 68.4% of Expensify shares are owned by institutional investors. 1.1% of Evertec shares are owned by insiders. Comparatively, 11.7% of Expensify shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Evertec and Expensify”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evertec	$931.82 million	1.62	$141.59 million	$2.07	11.81
Expensify	$142.10 million	0.69	-$21.39 million	($0.23)	-5.09

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evertec	1	4	2	0	2.14
Expensify	1	1	0	0	1.50

Evertec currently has a consensus target price of $33.20, indicating a potential upside of 35.77%. Expensify has a consensus target price of $2.50, indicating a potential upside of 113.68%. Given Expensify’s higher possible upside, analysts plainly believe Expensify is more favorable than Evertec.

Volatility and Risk

Evertec has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Expensify has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Evertec	13.95%	31.40%	9.36%
Expensify	-14.68%	-15.26%	-10.96%

Summary

Evertec beats Expensify on 11 of the 14 factors compared between the two stocks.

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.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.