Head to Head Comparison: Paysafe (NYSE:PSFE) vs. Evertec (NYSE:EVTC)

Evertec (NYSE:EVTC) and Paysafe (NYSE:PSFE) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Risk and Volatility

Evertec has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Paysafe has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Profitability

This table compares Evertec and Paysafe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evertec	13.95%	31.40%	9.36%
Paysafe	-11.44%	11.32%	1.66%

Institutional and Insider Ownership

96.8% of Evertec shares are held by institutional investors. Comparatively, 54.4% of Paysafe shares are held by institutional investors. 1.1% of Evertec shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Evertec and Paysafe”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evertec	$931.82 million	1.89	$141.59 million	$2.07	13.81
Paysafe	$1.70 billion	0.25	-$182.51 million	($3.53)	-2.29

Evertec has higher earnings, but lower revenue than Paysafe. Paysafe is trading at a lower price-to-earnings ratio than Evertec, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Evertec and Paysafe, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evertec	1	4	2	0	2.14
Paysafe	2	3	1	0	1.83

Evertec presently has a consensus target price of $33.20, suggesting a potential upside of 16.10%. Paysafe has a consensus target price of $10.12, suggesting a potential upside of 25.42%. Given Paysafe’s higher probable upside, analysts clearly believe Paysafe is more favorable than Evertec.

Summary

Evertec beats Paysafe on 11 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 Paysafe

Paysafe Limited provides end-to-end payment solutions in the United States, Germany, the United Kingdom, and internationally. Its payments platform offers a range of payment solutions comprising credit and debit card processing, digital wallet, eCash, and real-time banking solutions for entertainment verticals, such as iGaming, including online betting related to sports, e-sports, fantasy sports, poker, and other casino games, as well as travel, streaming/video gaming, retail/hospitality, and digital assets. The company operates through two segments, Merchant Solutions and Digital Wallets. The Merchant Solutions segment offers PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, gateway solutions, fraud and risk management tools, data and analytics, point of sale systems, and merchant financing solutions, as well as comprehensive support services under the Paysafe and Petroleum Card Services brands. The Digital Wallets segment offers digital wallet solutions under the Skrill, NETELLER, paysafecard, and Paysafecash brands; and pay-by-bank solutions under the Rapid Transfer brand. It also provides eCash solutions under the paysafecard and Paysafecash brands; paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases; Safetypay, a platform that enables eCommerce transactions; and PagoEfectivo, an alternative payment platform. The company is based in London, the United Kingdom.