Evertec (NYSE:EVTC) and Smartsheet (NYSE:SMAR) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Institutional and Insider Ownership
79.1% of Evertec shares are owned by institutional investors. Comparatively, 41.6% of Smartsheet shares are owned by institutional investors. 0.8% of Evertec shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of recent ratings for Evertec and Smartsheet, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Evertec presently has a consensus target price of $20.00, suggesting a potential downside of 16.32%. Smartsheet has a consensus target price of $36.33, suggesting a potential upside of 18.31%. Given Smartsheet’s stronger consensus rating and higher possible upside, analysts plainly believe Smartsheet is more favorable than Evertec.
This table compares Evertec and Smartsheet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Evertec pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Smartsheet does not pay a dividend. Evertec pays out 13.6% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Evertec and Smartsheet’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Evertec||$407.14 million||4.27||$55.05 million||$1.47||16.26|
|Smartsheet||$111.25 million||28.36||-$49.10 million||N/A||N/A|
Evertec has higher revenue and earnings than Smartsheet.
Evertec beats Smartsheet on 8 of the 13 factors compared between the two stocks.
EVERTEC, Inc. and its subsidiaries engage in transaction processing business serving financial institutions, merchants, corporations, and government agencies in Latin America and the Caribbean. The company operates through four segments: Payment Services – Puerto Rico & Caribbean, Payment Services – Latin America, 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. The company also 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; payment and billing products for merchants, businesses, and financial institutions; and EBT services. In addition, it provides business process management solutions comprising core bank processing, network hosting and management, IT consulting services, business process outsourcing, item and cash processing, and fulfillment solutions to financial institutions, and corporate and government customers. The company manages a system of electronic payment networks that process approximately two billion transactions. It sells and distributes its services primarily through a proprietary direct sales force, as well as various indirect sales channels, including value-added resellers. The company was formerly known as Carib Latam Holdings, Inc. EVERTEC, Inc. was founded in 1988 and is headquartered in San Juan, Puerto Rico.
Smartsheet Inc. provides cloud-based platform for execution of work. It enables teams and organizations to plan, capture, manage, automate, and report on work. The company offers Smartdashboards that provides the status of work to align individuals, managers, and executives; Smartportals to easily locate and access from any device the resources available for a project without IT assistance; Smartcards to organize, share, and act on workflows; and Smartgrids to keep teams on task by easily tracking multiple moving parts. It also provides Smartprojects; Smartcalendars, which align teams and organizations by connecting deadlines to workflows; Smartforms enables business users to collect information in a structured and consistent format; Smartautomation that automates repetitive processes; and Smartintegrations enable organizations and teams to connect, sync, and extend enterprise applications. In addition, it offers Connectors; and Control Center that enables organizations to achieve consistent work execution. As of January 31, 2018, it served approximately 92,000 customers. The company was founded in 2005 and is headquartered in Bellevue, Washington.
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