Everi Holdings (NYSE: EVRI) and Vantiv (NYSE:VNTV) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

73.5% of Everi Holdings shares are held by institutional investors. Comparatively, 82.9% of Vantiv shares are held by institutional investors. 4.5% of Everi Holdings shares are held by company insiders. Comparatively, 1.3% of Vantiv shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Everi Holdings and Vantiv, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everi Holdings 0 0 3 0 3.00
Vantiv 0 8 18 0 2.69

Everi Holdings currently has a consensus price target of $7.00, suggesting a potential downside of 8.38%. Vantiv has a consensus price target of $71.79, suggesting a potential downside of 0.68%. Given Vantiv’s higher possible upside, analysts plainly believe Vantiv is more favorable than Everi Holdings.

Profitability

This table compares Everi Holdings and Vantiv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everi Holdings -26.95% -16,159.62% -16.89%
Vantiv 5.58% 33.54% 8.00%

Earnings and Valuation

This table compares Everi Holdings and Vantiv’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Everi Holdings $919.45 million 0.55 $200.09 million ($3.75) -2.04
Vantiv $3.80 billion 3.07 $880.01 million $1.29 56.03

Vantiv has higher revenue and earnings than Everi Holdings. Everi Holdings is trading at a lower price-to-earnings ratio than Vantiv, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Everi Holdings has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Vantiv has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Summary

Vantiv beats Everi Holdings on 10 of the 13 factors compared between the two stocks.

About Everi Holdings

Everi Holdings Inc. is a holding company. The Company operates through subsidiaries, including Everi Games Holding Inc. (Everi Games Holding) and Everi Payments Inc. (Everi Payments or Payments). The Company operates through two segments: Games and Payments. The Company provides video and mechanical reel gaming content and technology solutions, integrated gaming payments solutions, and compliance and efficiency software. Its games segment provides solutions directly to gaming establishments to offer its patrons gaming entertainment related experiences. The Payments segment provides solutions directly to gaming establishments to offer their patrons cash access related services and products, including access to cash at gaming facilities through automatic teller machine (ATM) cash withdrawals, credit card cash access transactions and point of sale debit card transactions.

About Vantiv

Vantiv, Inc. is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services that utilize the Company’s Jeanie personal identification number (PIN) debit payment network.

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