Evertec (NYSE: EVTC) is one of 189 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare Evertec to similar businesses based on the strength of its institutional ownership, analyst recommendations, profitability, risk, dividends, valuation and earnings.

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 40.1% of their earnings in the form of a dividend.

Volatility & Risk

Evertec has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Evertec’s competitors have a beta of 1.12, suggesting that their average share price is 12% more volatile than the S&P 500.

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 -20.34% -267.96% -4.74%

Valuation & Earnings

This table compares Evertec and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Evertec $389.51 million $75.03 million 15.51
Evertec Competitors $2.79 billion $288.44 million 317.33

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.

Analyst Recommendations

This is a breakdown of current recommendations for Evertec and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evertec 1 4 1 0 2.00
Evertec Competitors 755 4726 7511 175 2.54

Evertec currently has a consensus target price of $17.80, indicating a potential upside of 28.99%. As a group, “IT Services & Consulting” companies have a potential downside of 9.42%. Given Evertec’s higher possible upside, analysts plainly believe Evertec is more favorable than its competitors.

Institutional and Insider Ownership

79.3% of Evertec shares are held by institutional investors. Comparatively, 61.4% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.4% of Evertec shares are held by insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Evertec competitors beat Evertec on 8 of the 15 factors compared.

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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