Head to Head Comparison: Repay (NASDAQ:RPAY) & Evertec (NYSE:EVTC)

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

Risk and Volatility

Evertec has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Repay has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.

Valuation and Earnings

This table compares Evertec and Repay”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	1.94	$141.59 million	$2.19	13.37
Repay	$309.26 million	0.79	-$256.72 million	($3.03)	-0.88

Evertec has higher revenue and earnings than Repay. Repay 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 recent ratings for Evertec and Repay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evertec	0	5	2	0	2.29
Repay	1	5	4	0	2.30

Evertec currently has a consensus target price of $35.80, suggesting a potential upside of 22.27%. Repay has a consensus target price of $6.14, suggesting a potential upside of 129.92%. Given Repay’s stronger consensus rating and higher possible upside, analysts plainly believe Repay is more favorable than Evertec.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Evertec	15.19%	33.27%	9.86%
Repay	-83.01%	9.30%	4.26%

Insider and Institutional Ownership

96.8% of Evertec shares are owned by institutional investors. Comparatively, 82.7% of Repay shares are owned by institutional investors. 0.6% of Evertec shares are owned by company insiders. Comparatively, 12.0% of Repay shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Evertec beats Repay on 9 of the 14 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 Repay

Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit card processing, automated clearing house (ACH) processing, e-cash, and digital wallet services; virtual credit card processing, enhanced ACH processing, instant funding, clearing and settlement, and communication solutions; and proprietary payment channels that include Web-based, virtual terminal, online client portal, mobile application, text-to-pay, interactive voice response, and point of sale services. It serves customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.