Everi Holdings (NYSE: EVRI) and Information Services Group (NASDAQ:III) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

85.4% of Everi Holdings shares are owned by institutional investors. Comparatively, 41.9% of Information Services Group shares are owned by institutional investors. 4.5% of Everi Holdings shares are owned by company insiders. Comparatively, 12.0% of Information Services Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Everi Holdings and Information Services Group’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%
Information Services Group -3.46% -10.15% -2.66%

Risk & Volatility

Everi Holdings has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Information Services Group has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Everi Holdings and Information Services Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everi Holdings 0 0 3 0 3.00
Information Services Group 0 0 2 0 3.00

Everi Holdings currently has a consensus target price of $7.00, suggesting a potential downside of 15.25%. Information Services Group has a consensus target price of $6.50, suggesting a potential upside of 58.92%. Given Information Services Group’s higher possible upside, analysts clearly believe Information Services Group is more favorable than Everi Holdings.

Valuation and Earnings

This table compares Everi Holdings and Information Services Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Everi Holdings $919.45 million 0.60 $200.09 million ($3.75) -2.20
Information Services Group $240.81 million 0.74 $13.26 million ($0.22) -18.59

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

Summary

Information Services Group beats Everi Holdings on 7 of the 12 factors compared between the two stocks.

Everi Holdings Company Profile

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.

Information Services Group Company Profile

Information Services Group, Inc. is a technology insights, market intelligence and advisory services company. The Company operates in the segment of fact-based sourcing advisory services. It supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services with a focus on information technology, business process transformation, program management services and enterprise resource planning. It offers service lines, including research, consulting, managed services, network carrier services, robotic process automation (RPA), outsourcing advisory and provider services. It specializes in digital transformation services, including automation, cloud and data analytics; managed governance and risk services; network carrier services; technology strategy and operations design; change management, and technology research and analysis.

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