Head to Head Survey: Evertec (NYSE:EVTC) and Pax Global Tech (OTCMKTS:PXGYF)

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

Risk and Volatility

Pax Global Tech has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Evertec has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Valuation and Earnings

This table compares Pax Global Tech 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
Pax Global Tech	$774.67 million	0.97	$91.46 million	N/A	N/A
Evertec	$903.38 million	2.04	$112.62 million	$2.25	12.80

Evertec has higher revenue and earnings than Pax Global Tech.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Pax Global Tech and Evertec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pax Global Tech	0	0	0	0	0.00
Evertec	0	5	3	0	2.38

Evertec has a consensus price target of $35.80, suggesting a potential upside of 24.31%. Given Evertec’s stronger consensus rating and higher probable upside, analysts clearly believe Evertec is more favorable than Pax Global Tech.

Insider & Institutional Ownership

96.8% of Evertec shares are owned by institutional investors. 0.6% of Evertec shares are owned 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.

Profitability

This table compares Pax Global Tech and Evertec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pax Global Tech	N/A	N/A	N/A
Evertec	15.56%	36.67%	10.29%

Summary

Evertec beats Pax Global Tech on 12 of the 12 factors compared between the two stocks.

About Pax Global Tech

PAX Global Technology Limited, an investment holding company, develops and sells electronic funds transfer point-of-sale products in Hong Kong, the People's Republic of China, the United States, and Italy. Its E-payment terminal products include smart E-payment solutions; and android smartPOS, android smart tablet, unattended payment products, PINpad, and Minipigs and mPOS. The company also develops MAXSTORE, a cloud-based Software as a Service platform that provides one-stop terminal management and valu-added services; paxRhino, a key injection service; and CyberLab, a payment application cloud test platform that provides professional one-stop online debugging and testing service. In addition, it offers payment solutions services, and maintenance and installation services. PAX Global Technology Limited was founded in 2000 and is headquartered in Wan Chai, Hong Kong.

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.