Evertec (NYSE: EVTC) is one of 186 public companies in the “IT Services & Consulting” industry, but how does it compare to its competitors? We will compare Evertec to related companies based on the strength of its dividends, profitability, risk, institutional ownership, analyst recommendations, earnings and valuation.

Dividends

Evertec pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. Evertec pays out 44.9% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.5% and pay out 36.5% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Evertec and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Evertec $389.51 million $75.03 million 15.67
Evertec Competitors $2.81 billion $293.37 million 309.56

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

Volatility & Risk

Evertec has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Evertec’s competitors have a beta of 1.15, meaning that their average stock price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Evertec and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evertec 0 4 1 0 2.20
Evertec Competitors 725 4646 7406 167 2.54

Evertec presently has a consensus price target of $17.80, suggesting a potential upside of 27.60%. As a group, “IT Services & Consulting” companies have a potential upside of 2.14%. Given Evertec’s higher possible upside, research analysts plainly believe Evertec is more favorable than its competitors.

Insider and Institutional Ownership

79.9% of Evertec shares are owned by institutional investors. Comparatively, 61.5% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 1.4% of Evertec shares are owned by company insiders. Comparatively, 16.3% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Evertec and its competitors’ 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 -73.29% -271.28% -4.56%

Summary

Evertec competitors beat Evertec on 8 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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