Intersections (NYSE: EVTC) and Evertec (NYSE:EVTC) 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 earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.
Institutional & Insider Ownership
28.6% of Intersections shares are held by institutional investors. Comparatively, 85.3% of Evertec shares are held by institutional investors. 52.7% of Intersections shares are held by company insiders. Comparatively, 0.8% of Evertec shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Evertec pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Intersections does not pay a dividend. Evertec pays out 13.6% of its earnings in the form of a dividend.
Risk and Volatility
Intersections has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Evertec has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Intersections and Evertec, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Evertec has a consensus price target of $20.00, indicating a potential downside of 19.03%. Given Evertec’s higher probable upside, analysts plainly believe Evertec is more favorable than Intersections.
This table compares Intersections and Evertec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Intersections and Evertec’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Intersections||$159.62 million||0.21||-$14.32 million||N/A||N/A|
|Evertec||$407.14 million||4.41||$55.05 million||$1.47||16.80|
Evertec has higher revenue and earnings than Intersections.
Evertec beats Intersections on 11 of the 13 factors compared between the two stocks.
Intersections Company Profile
Intersections Inc. provides identity risk management and privacy protection services in the United States and Canada. The company's Personal Information Services segment offers privacy, personal information security, and identity theft monitoring and remediation services for consumers to understand, monitor, manage, and protect against the risks associated with their personal information. Its services include credit reports, credit monitoring, educational credit scores, and credit education; reports, monitoring, and education about other personal information and risks, such as public records, identity validation, new accounts, and Internet data risks; identity theft recovery services; identity theft cost reimbursement insurance; and software and other technology tools and services under the IDENTITY GUARD brand. This segment also offers breach response services to organizations responding to compromises of sensitive personal information; and Privacy Now with Watson, an identity theft monitoring and privacy advisory solution. The company's Insurance and Other Consumer Services segment provides insurance and membership products for consumers. Intersections Inc. was founded in 1996 and is headquartered in Chantilly, Virginia.
Evertec Company Profile
EVERTEC, Inc. and its subsidiaries engage in transaction processing business serving financial institutions, merchants, corporations, and government agencies in Latin America and the Caribbean. The company operates through four segments: Payment Services – Puerto Rico & Caribbean, Payment Services – Latin America, 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. The company also 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; payment and billing products for merchants, businesses, and financial institutions; and EBT services. In addition, it provides business process management solutions comprising core bank processing, network hosting and management, IT consulting services, business process outsourcing, item and cash processing, and fulfillment solutions to financial institutions, and corporate and government customers. The company manages a system of electronic payment networks that process approximately two billion transactions. It sells and distributes its services primarily through a proprietary direct sales force, as well as various indirect sales channels, including value-added resellers. The company was formerly known as Carib Latam Holdings, Inc. EVERTEC, Inc. was founded in 1988 and is headquartered in San Juan, Puerto Rico.
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