Marqeta (NASDAQ:MQ) vs. Evertec (NYSE:EVTC) Head-To-Head Comparison

Marqeta (NASDAQ:MQ) and Evertec (NYSE:EVTC) are both mid-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Valuation & Earnings

This table compares Marqeta and Evertec”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marqeta	$506.99 million	4.45	$27.29 million	($0.13)	-38.69
Evertec	$845.49 million	2.43	$112.62 million	$2.12	15.15

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

Analyst Ratings

This is a summary of current recommendations and price targets for Marqeta and Evertec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marqeta	1	10	3	0	2.14
Evertec	0	5	3	0	2.38

Marqeta currently has a consensus target price of $6.07, suggesting a potential upside of 20.64%. Evertec has a consensus target price of $39.00, suggesting a potential upside of 21.40%. Given Evertec’s stronger consensus rating and higher probable upside, analysts clearly believe Evertec is more favorable than Marqeta.

Insider & Institutional Ownership

78.6% of Marqeta shares are owned by institutional investors. Comparatively, 96.8% of Evertec shares are owned by institutional investors. 12.6% of Marqeta shares are owned by insiders. Comparatively, 0.6% of Evertec shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Marqeta and Evertec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marqeta	-11.69%	-6.45%	-4.73%
Evertec	15.56%	36.67%	10.29%

Risk & Volatility

Marqeta has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Evertec has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Summary

Evertec beats Marqeta on 10 of the 13 factors compared between the two stocks.

About Marqeta

Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.

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.