Critical Survey: Evertec (NYSE:EVTC) versus RTB Digital, Inc. Common Stock (NASDAQ:RTB)

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

Valuation & Earnings

This table compares Evertec and RTB Digital, Inc. Common Stock”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evertec	$931.82 million	2.04	$141.59 million	$2.07	14.88
RTB Digital, Inc. Common Stock	$11.13 million	1.98	-$17.53 million	($28.90)	-0.60

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

Profitability

This table compares Evertec and RTB Digital, Inc. Common Stock’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%
RTB Digital, Inc. Common Stock	-165.69%	N/A	-100.25%

Institutional and Insider Ownership

96.8% of Evertec shares are held by institutional investors. Comparatively, 17.4% of RTB Digital, Inc. Common Stock shares are held by institutional investors. 1.1% of Evertec shares are held by company insiders. Comparatively, 12.4% of RTB Digital, Inc. Common Stock shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Evertec has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, RTB Digital, Inc. Common Stock has a beta of 2.15, suggesting that its stock price is 115% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Evertec and RTB Digital, Inc. Common Stock, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evertec	1	3	2	0	2.17
RTB Digital, Inc. Common Stock	1	1	0	0	1.50

Evertec currently has a consensus target price of $32.75, suggesting a potential upside of 6.35%. Given Evertec’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Evertec is more favorable than RTB Digital, Inc. Common Stock.

Summary

Evertec beats RTB Digital, Inc. Common Stock on 12 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 RTB Digital, Inc. Common Stock

Ryvyl Inc., a technology company, engages in the development, marketing, and sale of blockchain-based payment solutions in North America, Europe, and Asia. The company's blockchain-based systems facilitate, record, and store a volume of tokenized assets representing cash or data on a blockchain-based ledger. Its products include QuickCard Payment System, a physical and virtual payment card processing management system, including software that facilitates on and off ramp e-wallet management; Coyni, a digital token platform, which offers custodial assurance by utilizing its stable coin and blockchain technology in a closed-loop ecosystem; and ChargeSavvy, an end-to-end POS solution comprising software and hardware for the restaurant and hospitality industry. It serves customers in various industries, including foreign exchange, retail, and e-commerce sectors. The company was formerly known as GreenBox POS and changed its name to Ryvyl Inc. in October 2022. Ryvyl Inc. is based in San Diego, California.