Evertec (NYSE:EVTC – Get Free Report) and Agritek (OTCMKTS:AGTK – Get Free Report) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Valuation and Earnings
This table compares Evertec and Agritek”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Evertec | $845.49 million | 2.56 | $112.62 million | $2.12 | 15.93 |
Agritek | N/A | N/A | N/A | N/A | N/A |
Risk & Volatility
Evertec has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Agritek has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500.
Institutional & Insider Ownership
96.8% of Evertec shares are held by institutional investors. 0.6% of Evertec shares are held by insiders. Comparatively, 9.9% of Agritek shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for Evertec and Agritek, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Evertec | 0 | 3 | 3 | 0 | 2.50 |
Agritek | 0 | 0 | 0 | 0 | 0.00 |
Evertec currently has a consensus price target of $39.00, indicating a potential upside of 15.46%. Given Evertec’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Evertec is more favorable than Agritek.
Profitability
This table compares Evertec and Agritek’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Evertec | 15.56% | 36.67% | 10.29% |
Agritek | N/A | N/A | N/A |
Summary
Evertec beats Agritek on 9 of the 10 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 Agritek
Agritek Holdings, Inc. distributes hemp and cannabis products under the Hemp Pops, MD Vapes, Rehab Rx, Higher Society, and California Premiums brands in the United States. Its products include human ingestible, such as tinctures, capsules, and gummies; CBD edibles; topicals; and pet products. The company also offers business services, including operational and compliance consulting, funding and financing, dispensary and retail, commercial production and equipment build out, multichannel supply chain, and consumer product, as well as branding, marketing, and sales solutions. In addition, it is involved in the acquisition and leasing of real estate properties, such as cultivation space and related facilities to licensed marijuana growers and dispensary owners. Agritek Holdings, Inc. distributes its products through e-commerce websites comprising RehabRx.com and Hemppops.com; third-party e-commerce websites; and various brick and mortar retailers. The company was formerly known as MediSwipe Inc. and changed its name to Agritek Holdings, Inc. in April 2014. Agritek Holdings, Inc. was incorporated in 1997 and is headquartered in Miami, Florida.
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