Evertec (NYSE:EVTC – Get Free Report) and Flywire (NASDAQ:FLYW – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Earnings and Valuation
This table compares Evertec and Flywire”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Evertec | $996.16 million | 1.74 | $141.59 million | $1.54 | 18.86 |
| Flywire | $623.03 million | 3.55 | $13.50 million | $0.26 | 70.00 |
Insider & Institutional Ownership
96.8% of Evertec shares are held by institutional investors. Comparatively, 95.9% of Flywire shares are held by institutional investors. 1.1% of Evertec shares are held by company insiders. Comparatively, 5.0% of Flywire shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
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, Flywire has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.
Profitability
This table compares Evertec and Flywire’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% |
| Flywire | 4.77% | 4.08% | 2.81% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Evertec and Flywire, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Evertec | 0 | 4 | 2 | 0 | 2.33 |
| Flywire | 0 | 7 | 8 | 0 | 2.53 |
Evertec currently has a consensus price target of $35.00, indicating a potential upside of 20.50%. Flywire has a consensus price target of $20.23, indicating a potential upside of 11.15%. Given Evertec’s higher probable upside, equities analysts clearly believe Evertec is more favorable than Flywire.
Summary
Evertec beats Flywire on 8 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 Flywire
Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company’s platform facilitates payment flows across multiple currencies, payment types, and payment options, as well as provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. The company was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.
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