Ebix Inc. (EBIX)’s Financial Results Comparing With EVERTEC Inc. (NYSE:EVTC)

Ebix Inc. (NASDAQ:EBIX) and EVERTEC Inc. (NYSE:EVTC) compete against each other in the Business Software & Services sector. We will contrast them and contrast their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ebix Inc. 466.18M 3.85 111.20M 3.44 13.95
EVERTEC Inc. 435.27M 4.67 71.90M 0.97 27.69

In table 1 we can see Ebix Inc. and EVERTEC Inc.’s gross revenue, earnings per share and valuation. EVERTEC Inc. appears to has lower revenue and earnings than Ebix Inc. Business that presently has a lower P/E ratio means that it is the more affordable of the two businesses. Ebix Inc.’s presently lower P/E ratio means it is more affordable than EVERTEC Inc.

Profitability

Table 2 provides the return on assets, net margins and return on equity of the two firms.

Net Margins Return on Equity Return on Assets
Ebix Inc. 23.85% 22.4% 8.8%
EVERTEC Inc. 16.52% 39.7% 7.9%

Risk & Volatility

Ebix Inc.’s volatility measures that it’s 50.00% more volatile than Standard & Poor’s 500 due to its 1.5 beta. Competitively, EVERTEC Inc. is 2.00% less volatile than Standard & Poor’s 500, because of the 0.98 beta.

Liquidity

The Current Ratio of Ebix Inc. is 1.6 while its Quick Ratio stands at 1.6. The Current Ratio of rival EVERTEC Inc. is 1.7 and its Quick Ratio is has 1.7. EVERTEC Inc. is better equipped to clear short and long-term obligations than Ebix Inc.

Dividends

Ebix Inc. pays out a $0.3 per share dividend on a yearly basis and it also offers 0.53% dividend yield. EVERTEC Inc. offers an annual dividend of $0.05 per share, bundled with 0.17% dividend yield.

Analyst Ratings

Recommendations and Ratings for Ebix Inc. and EVERTEC Inc. can be find in next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Ebix Inc. 0 1 1 2.50
EVERTEC Inc. 0 0 2 3.00

The average price target of Ebix Inc. is $99, with potential upside of 72.44%. Competitively EVERTEC Inc. has a consensus price target of $33, with potential upside of 14.70%. Based on the analysts opinion we can conclude, Ebix Inc. is looking more favorable than EVERTEC Inc.

Institutional and Insider Ownership

Institutional investors owned 85.5% of Ebix Inc. shares and 88% of EVERTEC Inc. shares. Insiders owned roughly 22.5% of Ebix Inc.’s shares. Competitively, 1.2% are EVERTEC Inc.’s share owned by insiders.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Ebix Inc. 1.48% -13.02% -39.69% -38.21% -38.37% -39.53%
EVERTEC Inc. -1.83% -9.54% 15.15% 19.24% 98.01% 96.56%

For the past year Ebix Inc. has -39.53% weaker performance while EVERTEC Inc. has 96.56% stronger performance.

Summary

Ebix Inc. beats on 11 of the 17 factors EVERTEC Inc.

Ebix, Inc. provides software and e-commerce solutions to insurance, finance, and healthcare industries. It offers software development, customization, and consulting services to various entities in the insurance industry, including carriers, brokers, exchanges, and standard making bodies. The company operates data exchanges in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, insurance underwriting, and property and casualty (P&C) insurance. It also focuses on designing and deploying back-end systems, such as eGlobal, which targets multinational P&C insurance brokers; WinBeat that targets P&C brokers in the Australian and New Zealand markets; and EbixASP, a system for the P&C insurance brokers in the United States. In addition, the company offers business process outsourcing services that include providing domain intensive project management, time, and material based consulting engagements to clients; the creation and tracking of certificates of insurance issued in the United States and Australian markets; and the provision of claims adjudication and settlement, call center, and back office support, as well as a software-based service for the issuance of certificates of insurance and a service to track certificates of insurance for corporate clients in the United States and Australia. Further, the company offers carrier systems, which pertains to the designing and deploying on-demand back-end systems for P&C insurance companies. The company was formerly known as Delphi Systems, Inc. and changed its name to Ebix, Inc. in December 2003. Ebix, Inc. was founded in 1976 and is headquartered in Johns Creek, Georgia.

EVERTEC, Inc. and its subsidiaries engage in transaction processing business serving financial institutions, merchants, corporations, and government agencies in Latin America and the Caribbean. The company operates through three segments: Merchant Acquiring, Payment Processing, and Business Solutions. The Merchant Acquiring segment 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 Payment Processing segment 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. Its services include credit and debit card processing, authorization and settlement, and fraud monitoring and control services to debit or credit issuers; payment and billing products for merchants, businesses, and financial institutions; and EBT services. The Business Solutions segment 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, corporations, and governments. 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, as well as various indirect sales channels, including value-added resellers. The company was formerly known as Carib Latam Holdings, Inc. EVERTEC, Inc. was founded in 1988 and is headquartered in San Juan, Puerto Rico.