Evertec (NYSE:EVTC) versus Abacus Global Management (NYSE:ABX) Critical Contrast

Abacus Global Management (NYSE:ABX) and Evertec (NYSE:EVTC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Profitability

This table compares Abacus Global Management and Evertec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abacus Global Management	10.55%	21.03%	10.19%
Evertec	9.80%	32.07%	9.12%

Risk & Volatility

Abacus Global Management has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500. Comparatively, Evertec has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Insider & Institutional Ownership

96.8% of Evertec shares are held by institutional investors. 46.4% of Abacus Global Management shares are held by company insiders. Comparatively, 1.1% of Evertec shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Abacus Global Management and Evertec”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abacus Global Management	$235.24 million	3.95	$36.53 million	$0.28	33.96
Evertec	$931.82 million	1.88	$141.59 million	$1.54	19.01

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

Analyst Recommendations

This is a breakdown of current recommendations for Abacus Global Management and Evertec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abacus Global Management	0	3	1	1	2.60
Evertec	0	4	2	0	2.33

Abacus Global Management presently has a consensus price target of $12.00, suggesting a potential upside of 26.21%. Evertec has a consensus price target of $35.00, suggesting a potential upside of 19.56%. Given Abacus Global Management’s stronger consensus rating and higher possible upside, analysts clearly believe Abacus Global Management is more favorable than Evertec.

Summary

Abacus Global Management beats Evertec on 8 of the 15 factors compared between the two stocks.

About Abacus Global Management

Abacus Life, Inc. operates as an alternative asset manager specializing in life insurance products. It purchases life insurance policies from consumers seeking liquidity and manages policies over time via trading, holding, and/or servicing. The company was founded in 2004 and is based in Orlando, Florida.

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.