Verisk Analytics (NASDAQ:VRSK) and Evertec (NYSE:EVTC) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.
Risk and Volatility
Verisk Analytics has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Evertec has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
92.6% of Verisk Analytics shares are held by institutional investors. Comparatively, 78.5% of Evertec shares are held by institutional investors. 3.2% of Verisk Analytics shares are held by company insiders. Comparatively, 0.8% of Evertec shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Verisk Analytics and Evertec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Evertec pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Verisk Analytics does not pay a dividend. Evertec pays out 13.6% of its earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for Verisk Analytics and Evertec, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Verisk Analytics presently has a consensus price target of $106.62, indicating a potential downside of 11.19%. Evertec has a consensus price target of $20.00, indicating a potential downside of 22.53%. Given Verisk Analytics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Verisk Analytics is more favorable than Evertec.
Valuation and Earnings
This table compares Verisk Analytics and Evertec’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Verisk Analytics||$2.15 billion||9.22||$555.10 million||$3.21||37.40|
|Evertec||$407.14 million||4.61||$55.05 million||$1.47||17.56|
Verisk Analytics has higher revenue and earnings than Evertec. Evertec is trading at a lower price-to-earnings ratio than Verisk Analytics, indicating that it is currently the more affordable of the two stocks.
Verisk Analytics beats Evertec on 12 of the 16 factors compared between the two stocks.
Verisk Analytics Company Profile
Verisk Analytics, Inc. provides data analytics solutions for customers in the insurance, energy, and financial markets in the United States and internationally. Its Decision Analytics segment develops predictive models to forecast scenarios, and produce standard and customized analytics for predicting loss, selecting and pricing risk, detecting fraud before and after a loss event, and quantifying losses. It provides fraud-detection tools for the property and casualty (P&C) insurance industry; data analytics for energy, chemicals, and metals and mining industries; and data and information services that enable enhanced compliance with environmental health and safety, as well as helps businesses and governments to anticipate and manage climate-and weather-related risks. The company's Risk Assessment segment offers solutions to P&C insurance customers and focuses on prediction of loss, and selection and pricing of risk. Its solutions include industry-standard insurance programs that help P&C insurers in defining coverage and issue policies; actuarial services to help its customers analyze and price their risks; and customized services that include assisting with the development of independent insurance programs, analysis of their own underwriting experience, development of classification systems and rating plans, and other business decisions, as well as supplies information to various customers in other markets. This segment's solutions also comprise property-specific rating and underwriting information on properties, businesses, and communities to evaluate, price, and process commercial insurance applications, including property, auto, general liability, business owner's policy, and workers compensation. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.
Evertec Company Profile
EVERTEC, Inc. and its subsidiaries engage in transaction processing business serving financial institutions, merchants, corporations, and government agencies in Latin America and the Caribbean. The company operates through four segments: Payment Services – Puerto Rico & Caribbean, Payment Services – Latin America, 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. The company also 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; payment and billing products for merchants, businesses, and financial institutions; and EBT services. In addition, it provides business process management solutions comprising core bank processing, network hosting and management, IT consulting services, business process outsourcing, item and cash processing, and fulfillment solutions to financial institutions, and corporate and government customers. The company manages a system of electronic payment networks that process approximately two billion transactions. It sells and distributes its services primarily through a proprietary direct sales force, as well as various indirect sales channels, including value-added resellers. The company was formerly known as Carib Latam Holdings, Inc. EVERTEC, Inc. was founded in 1988 and is headquartered in San Juan, Puerto Rico.
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