B. Riley Financial (NASDAQ:RILY) and EVO Payments (NASDAQ:EVOP) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares B. Riley Financial and EVO Payments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
B. Riley Financial 3.67% 11.48% 1.70%
EVO Payments -5.50% N/A -2.10%

Dividends

B. Riley Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. EVO Payments does not pay a dividend.

Valuation & Earnings

This table compares B. Riley Financial and EVO Payments’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
B. Riley Financial $422.99 million 1.06 $15.51 million N/A N/A
EVO Payments $504.75 million 4.18 -$40.24 million N/A N/A

B. Riley Financial has higher earnings, but lower revenue than EVO Payments.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for B. Riley Financial and EVO Payments, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
B. Riley Financial 0 0 0 0 N/A
EVO Payments 1 6 5 0 2.33

EVO Payments has a consensus price target of $25.55, indicating a potential downside of 1.79%. Given EVO Payments’ higher possible upside, analysts clearly believe EVO Payments is more favorable than B. Riley Financial.

Insider and Institutional Ownership

45.8% of B. Riley Financial shares are held by institutional investors. Comparatively, 35.9% of EVO Payments shares are held by institutional investors. 24.2% of B. Riley Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

B. Riley Financial beats EVO Payments on 7 of the 11 factors compared between the two stocks.

B. Riley Financial Company Profile

B. Riley Financial, Inc. provides financial services and solutions in North America, Australia, and Europe. The company operates in four segments: Capital Markets, Auction and Liquidation, Valuation and Appraisal, and Principal Investments – United Online. It offers investment banking services, including merger and acquisitions, restructuring advisory, initial and secondary public offerings, and institutional private placements; and corporate finance, research, securities lending, wealth management, and sales and trading services to corporate, institutional, and high net worth clients. The company also provides retail store liquidation, and wholesale and industrial assets disposition services; valuation and appraisal services to financial institutions, lenders, private equity firms, and other providers of capital; and consumer subscription services consisting of Internet access services under the NetZero and Juno brands, as well as email, Internet security, Web hosting, and other services. In addition, it offers advisory services to private funds, and institutional and high net worth investors; multi-family office practice and wealth management services to ultra-high net worth individuals and families; and senior secured and second lien secured loans to middle market public and the private U.S. companies. The company was formerly known as Great American Group, Inc. and changed its name to B. Riley Financial, Inc. in November 2014. B. Riley Financial, Inc. was founded in 1973 and is headquartered in Woodland Hills, California.

EVO Payments Company Profile

EVO Payments, Inc. operates as an integrated merchant acquirer and payment processor servicing approximately 525,000 merchants. The company processes approximately 900 million transactions in North America and approximately 1.7 billion transactions in Europe. Its payment and commerce solutions consist of gateway solutions, online fraud prevention and management reporting, online hosted payments page capabilities, security tokenization, and encryption solutions at the point-of-sale and online; dynamic currency conversion; loyalty offers; and other ancillary solutions. The company also offers processing capabilities for specific industries and provides merchants with recurring billing, multi-currency authorization, and settlement and cross-border processing. In addition, it provides other services that enable through technical integrations with third-party providers. EVO Payments, Inc. operates as an intermediary between merchants and card networks. The company was founded in 1989 and is headquartered in Atlanta, Georgia.

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