Contrasting Corpay (NYSE:CPAY) & Evertec (NYSE:EVTC)

Evertec (NYSE:EVTC) and Corpay (NYSE:CPAY) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for Evertec and Corpay, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evertec	1	3	2	0	2.17
Corpay	0	3	12	0	2.80

Evertec currently has a consensus target price of $32.75, indicating a potential upside of 8.19%. Corpay has a consensus target price of $382.54, indicating a potential upside of 4.54%. Given Evertec’s higher probable upside, equities analysts plainly believe Evertec is more favorable than Corpay.

Insider and Institutional Ownership

96.8% of Evertec shares are owned by institutional investors. Comparatively, 98.8% of Corpay shares are owned by institutional investors. 1.1% of Evertec shares are owned by insiders. Comparatively, 5.2% of Corpay shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Evertec has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Corpay has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Evertec and Corpay’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%
Corpay	24.60%	38.68%	6.46%

Valuation & Earnings

This table compares Evertec and Corpay”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	2.00	$141.59 million	$2.07	14.62
Corpay	$4.53 billion	5.28	$1.07 billion	$16.71	21.90

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

Summary

Corpay beats Evertec 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 Corpay

Volatus is a leader in innovative global aerial solutions for intelligence and cargo. With over 100 years of combined institutional knowledge in aviation, Volatus provides comprehensive solutions using both piloted and remotely piloted aircraft systems for a wide array of industries, including oil and gas, energy utilities, healthcare, public safety, and infrastructure. The Company is committed to enhancing operational efficiency, safety, and sustainability through cutting-edge aerial technologies.