Financial Comparison: Ituran Location and Control (NASDAQ:ITRN) & Evertz Technologies (OTCMKTS:EVTZF)

Ituran Location and Control (NASDAQ:ITRN) and Evertz Technologies (OTCMKTS:EVTZF) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Dividends

Ituran Location and Control pays an annual dividend of $2.00 per share and has a dividend yield of 3.6%. Evertz Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 4.2%. Ituran Location and Control pays out 66.0% of its earnings in the form of a dividend. Evertz Technologies pays out 51.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ituran Location and Control has raised its dividend for 4 consecutive years. Evertz Technologies is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

94.8% of Ituran Location and Control shares are held by institutional investors. Comparatively, 6.2% of Evertz Technologies shares are held by institutional investors. 0.0% of Ituran Location and Control shares are held by company 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.

Profitability

This table compares Ituran Location and Control and Evertz Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ituran Location and Control	16.03%	27.70%	15.75%
Evertz Technologies	N/A	N/A	N/A

Valuation and Earnings

This table compares Ituran Location and Control and Evertz Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ituran Location and Control	$375.23 million	2.92	$57.97 million	$3.03	18.20
Evertz Technologies	N/A	N/A	N/A	$0.93	12.37

Ituran Location and Control has higher revenue and earnings than Evertz Technologies. Evertz Technologies is trading at a lower price-to-earnings ratio than Ituran Location and Control, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Ituran Location and Control and Evertz Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ituran Location and Control	0	1	4	0	2.80
Evertz Technologies	0	1	1	0	2.50

Ituran Location and Control currently has a consensus target price of $60.67, suggesting a potential upside of 9.98%. Given Ituran Location and Control’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Ituran Location and Control is more favorable than Evertz Technologies.

Summary

Ituran Location and Control beats Evertz Technologies on 12 of the 14 factors compared between the two stocks.

About Ituran Location and Control

Ituran Location and Control Ltd., together with its subsidiaries, provides location based telematics services and machine-to-machine telematics products. It operates through two segments, Telematics Services and Telematics Products. The Telematics services segment offers stolen vehicle recovery and tracking services, which enables to locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and locator services that allow customers to protect valuable merchandise and equipment. This segment also delivers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and Connected Car, a service platform that includes a back-office application, a telematics device installed in the vehicle, mobile apps for IOS and Android users, and interface using the car infotainment screen, as well as usage based insurance and auto financing services. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The Telematics Products segment offers Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. The company was incorporated in 1994 and is headquartered in Azor, Israel.

About Evertz Technologies

Evertz Technologies Limited engages in the design, manufacture, and distribution of video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets in Canada, the United States, and internationally. The company offers contribution and distribution encoder, decoder, receiver, and processing products; and control panels, intelligent operations and controls, big data analytics, and network management systems, as well as orchestration, monitoring, and analytics solutions. It also provides video encoders, decoders, and multiplexing products comprising encoders/transcoders, decoders, multiplexers, monitoring and auto-changeover products, and enterprise products; optical media transport products; and audio consoles and processing products, such as mixing consoles, routing and I/O products, summing and processing products, and IP audio gateways. In addition, the company offers asset management and playout products, consisting of asset management, ingest, playout and branding, and transcoding/conforming products; live media production products; routers; flexible media edge products; and IP audio/video processing, media gateway, switch routing, timing, and software defined network orchestration products. Further, it provides multiviewers solutions comprising IP and SDI multiviewers, MVP, and accessories; Radio Frequency (RF) products; timing and synchronization products; and infrastructure and conversion products. The company serves content creators, broadcasters, specialty channels, and television service providers. Evertz Technologies Limited was founded in 1966 and is headquartered in Burlington, Canada.