Evertec (NYSE:EVTC – Get Free Report) is one of 341 publicly-traded companies in the “Financial Services” industry, but how does it contrast to its peers? We will compare Evertec to similar companies based on the strength of its profitability, analyst recommendations, valuation, institutional ownership, earnings, risk and dividends.
Risk and Volatility
Evertec has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Evertec’s peers have a beta of 2.50, meaning that their average share price is 150% more volatile than the S&P 500.
Insider and Institutional Ownership
96.8% of Evertec shares are owned by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are owned by institutional investors. 1.1% of Evertec shares are owned by company insiders. Comparatively, 21.8% of shares of all “Financial Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings for Evertec and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Evertec | 0 | 3 | 2 | 0 | 2.40 |
| Evertec Competitors | 1988 | 6946 | 11713 | 446 | 2.50 |
Evertec presently has a consensus price target of $36.67, suggesting a potential upside of 8.84%. As a group, “Financial Services” companies have a potential downside of 6.28%. Given Evertec’s higher probable upside, equities research analysts clearly believe Evertec is more favorable than its peers.
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 | 9.00% | 32.81% | 8.93% |
| Evertec Competitors | -338.89% | -39.94% | -5.83% |
Dividends
Evertec pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Evertec pays out 13.2% of its earnings in the form of a dividend. As a group, “Financial Services” companies pay a dividend yield of 4.3% and pay out -72.2% of their earnings in the form of a dividend. Evertec lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Earnings & Valuation
This table compares Evertec and its peers gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Evertec | $931.82 million | $141.59 million | 22.16 |
| Evertec Competitors | $9.22 billion | $1.09 billion | 10.06 |
Evertec’s peers have higher revenue and earnings than Evertec. Evertec is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Summary
Evertec peers beat Evertec on 9 of the 15 factors compared.
Evertec Company Profile
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.
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