Head to Head Comparison: Evertec (NYSE:EVTC) versus Paypoint (OTCMKTS:PYPTF)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Evertec and Paypoint, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evertec	1	3	2	0	2.17
Paypoint	0	0	0	0	0.00

Evertec presently has a consensus price target of $32.75, indicating a potential upside of 12.53%. Given Evertec’s stronger consensus rating and higher possible upside, analysts clearly believe Evertec is more favorable than Paypoint.

Institutional & Insider Ownership

96.8% of Evertec shares are held by institutional investors. 1.1% of Evertec shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Evertec and Paypoint”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	1.92	$141.59 million	$2.07	14.06
Paypoint	$451.69 million	1.10	$52.72 million	N/A	N/A

Evertec has higher revenue and earnings than Paypoint.

Volatility & Risk

Evertec has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Paypoint has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Profitability

This table compares Evertec and Paypoint’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%
Paypoint	N/A	N/A	N/A

Summary

Evertec beats Paypoint on 12 of the 12 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 Paypoint

PayPoint plc engages in the provision of payments and banking, shopping, and e-commerce services and products in the United Kingdom. The company operates through two segments: PayPoint and Love2shop. The PayPoint segment provides card payment services to retailers, including leased payment devices; EPoS; ATM cash machines; SIM cards sales; receipt advertising; bill payment services and cash top-ups to individual consumers; parcel delivery and collection services; retailer service fees solutions; and digital payment services, as well as cash through to digital services. The segment offers its products under PayPoint One, eMoney, MultiPay, CashOut, and Direct Debits platforms. The Love2shop segment is involved in the provision of shopping vouchers, cards, and e-codes which customers may redeem with participating retailers; and Christmas savings club, to which customers make regular payments throughout the year to help spread the cost of Christmas, before converting to a voucher. It serves consumers, SMEs, and convenience retailers in the commercial, not-for-profit, and public sectors. The company was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.