Evertec (NYSE:EVTC) and Treasure Global (NASDAQ:TGL) Critical Analysis

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Evertec and Treasure Global, as provided by MarketBeat.

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

Evertec currently has a consensus target price of $35.00, indicating a potential upside of 7.98%. Given Evertec’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Evertec is more favorable than Treasure Global.

Earnings & Valuation

This table compares Evertec and Treasure Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evertec	$931.82 million	2.08	$141.59 million	$1.54	21.05
Treasure Global	$5.17 million	0.22	-$11.09 million	($14.10)	-0.02

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

Risk and Volatility

Evertec has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Treasure Global has a beta of 3.01, meaning that its stock price is 201% more volatile than the S&P 500.

Institutional & Insider Ownership

96.8% of Evertec shares are held by institutional investors. 1.1% of Evertec shares are held by insiders. Comparatively, 6.8% of Treasure Global shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Evertec	9.80%	32.07%	9.12%
Treasure Global	-214.47%	-87.03%	-62.95%

Summary

Evertec beats Treasure Global on 11 of the 13 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 Treasure Global

Treasure Global Inc. offers e-commerce activities through its platform. Its platform provides consumers and merchants instant rebates and affiliate cashback programs, while providing a seamless e-payment solution with rebates in both e-commerce and physical retailers/merchant settings. The company offers ZCITY App, a payment gateway platform. Treasure Global Inc. was incorporated in 2020 and is based in New York, New York.