Reviewing Paysign (NASDAQ:PAYS) and Evertec (NYSE:EVTC)

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

Insider and Institutional Ownership

96.8% of Evertec shares are owned by institutional investors. Comparatively, 25.9% of Paysign shares are owned by institutional investors. 0.6% of Evertec shares are owned by company insiders. Comparatively, 22.4% of Paysign shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Evertec and Paysign”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evertec	$868.96 million	2.44	$112.62 million	$1.99	16.73
Paysign	$58.38 million	7.57	$3.82 million	$0.11	74.09

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Evertec and Paysign, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evertec	0	3	3	0	2.50
Paysign	0	0	4	0	3.00

Evertec currently has a consensus target price of $39.00, indicating a potential upside of 17.12%. Paysign has a consensus target price of $8.06, indicating a potential downside of 1.07%. Given Evertec’s higher possible upside, analysts clearly believe Evertec is more favorable than Paysign.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Evertec	14.89%	38.45%	10.24%
Paysign	9.55%	19.49%	3.32%

Risk and Volatility

Evertec has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Paysign has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Summary

Evertec beats Paysign 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 Paysign

Paysign, Inc. provides prepaid card programs, comprehensive patient affordability offerings, digital banking services, and integrated payment processing services for businesses, consumers, and government institutions. Its product offerings include solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card. The company markets its prepaid card solutions under the Paysign brand. Its primary market focus is on companies and municipalities that require a streamlined payment solution for rewards, rebates, payment assistance, and other payments to their customers, employees, agents, and others. The company was formerly known as 3PEA International, Inc. and changed its name to Paysign, Inc. in April 2019. Paysign, Inc. was incorporated in 1995 and is headquartered in Henderson, Nevada.