Critical Contrast: Loomis (OTCMKTS:LOIMF) versus Evertec (NYSE:EVTC)

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

Volatility & Risk

Loomis has a beta of -1.5, indicating that its share price is 250% less volatile than the S&P 500. Comparatively, Evertec has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Loomis and Evertec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loomis	0	0	0	0	0.00
Evertec	0	4	3	1	2.63

Evertec has a consensus target price of $35.80, suggesting a potential upside of 23.07%. Given Evertec’s stronger consensus rating and higher probable upside, analysts clearly believe Evertec is more favorable than Loomis.

Valuation and Earnings

This table compares Loomis and Evertec”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loomis	$2.88 billion	N/A	$155.24 million	$2.61	16.42
Evertec	$845.49 million	2.20	$112.62 million	$2.25	12.93

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Loomis	5.90%	14.07%	4.62%
Evertec	16.17%	34.79%	10.16%

Insider & Institutional Ownership

96.8% of Evertec shares are held by institutional investors. 0.6% 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.

Summary

Evertec beats Loomis on 10 of the 14 factors compared between the two stocks.

About Loomis

Loomis AB (publ) provides solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables. The company offers a range of solutions for cash in transit, cash management services, foreign exchange services, automated teller machines, automated solutions, and international valuables logistics, as well as operates Loomis Pay, a payment service that enables processing of various types of payment methods, such as card, cash, and digital alternatives. It serves financial institutions, banks, retailers, commercial enterprises, and other customers, as well as public sector in Sweden, the United States, France, Switzerland, Spain, the United Kingdom, and internationally. Loomis AB (publ) was founded in 1852 and is headquartered in Stockholm, Sweden.

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.