Critical Review: Evertec (NYSE:EVTC) & CrowdGather (NYSE:CRWG)

Evertec (NYSE:EVTC) and CrowdGather (OTCMKTS:CRWG) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Dividends

Evertec pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. CrowdGather does not pay a dividend. Evertec pays out 11.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Evertec and CrowdGather, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evertec 0 2 3 0 2.60
CrowdGather 0 0 0 0 N/A

Evertec presently has a consensus target price of $30.20, suggesting a potential downside of 8.04%. Given Evertec’s higher possible upside, equities analysts plainly believe Evertec is more favorable than CrowdGather.

Insider and Institutional Ownership

77.8% of Evertec shares are owned by institutional investors. 0.6% of Evertec shares are owned by insiders. Comparatively, 36.4% of CrowdGather shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Evertec has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, CrowdGather has a beta of -2.55, meaning that its stock price is 355% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Evertec 19.44% 61.11% 13.84%
CrowdGather N/A N/A N/A

Earnings & Valuation

This table compares Evertec and CrowdGather’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Evertec $453.87 million 5.23 $86.27 million $1.70 19.32
CrowdGather $370,000.00 1.30 -$570,000.00 N/A N/A

Evertec has higher revenue and earnings than CrowdGather.

Summary

Evertec beats CrowdGather on 11 of the 13 factors compared between the two stocks.

About Evertec

EVERTEC, Inc. engage in transaction processing business serving financial institutions, merchants, corporations, and government agencies in Latin America and the Caribbean. The company operates in 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; 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. The company was formerly known as Carib Latam Holdings, Inc. EVERTEC, Inc. was founded in 1988 and is based in San Juan, Puerto Rico.

About CrowdGather

CrowdGather, Inc., a social networking Internet company, develops and hosts forum based Websites primarily in the United States. It monetizes a network of online forums and message boards designed to engage, provide information to, and build community around users. The company's forum community connects a network of people sharing their questions, expertise, and experiences. It also provides targeted advertising and marketing services for online customers. The company's portfolio includes approximately 350 domain names and 70 Web properties at various stages of development. CrowdGather, Inc. is headquartered in Calabasas, California.

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