Reviewing EVERTEC (NYSE:EVTC) and Next Technology (NASDAQ:NXTT)

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

Insider & Institutional Ownership

96.8% of EVERTEC shares are owned by institutional investors. Comparatively, 2.7% of Next Technology shares are owned by institutional investors. 0.8% of EVERTEC shares are owned by insiders. Comparatively, 37.5% of Next Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for EVERTEC and Next Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVERTEC	1	1	2	0	2.25
Next Technology	0	0	0	0	0.00

EVERTEC currently has a consensus price target of $35.00, suggesting a potential upside of 4.14%. Given EVERTEC’s stronger consensus rating and higher probable upside, analysts plainly believe EVERTEC is more favorable than Next Technology.

Profitability

This table compares EVERTEC and Next Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EVERTEC	10.20%	33.01%	8.85%
Next Technology	N/A	54.87%	50.18%

Risk and Volatility

EVERTEC has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Next Technology has a beta of 3.23, indicating that its stock price is 223% more volatile than the S&P 500.

Valuation & Earnings

This table compares EVERTEC and Next Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVERTEC	$823.71 million	2.60	$79.72 million	$1.28	26.26
Next Technology	$1.13 million	11.70	-$9.92 million	N/A	N/A

EVERTEC has higher revenue and earnings than Next Technology.

Summary

EVERTEC beats Next Technology on 7 of the 12 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 Next Technology

Next Technology Holding Inc. provides technical services and solutions through its social e-commerce platform primarily in Mainland China. It offers YCloud, a micro-business cloud intelligent internationalization system that conducts multi-channel data analysis through the learning of big data and social recommendation relationships, as well as provides users with AI fission and management systems, and supply chain systems. The company’s YCloud system also provides micro-business owners with various payment methods, such as Alipay, WeChat, and UnionPay. In addition, it offers chatGPT technical services; and technical system support, software development, and services. The company serves individual and corporate users in the micro business industry. It also has operations in Hong Kong and Singapore. The company was formerly known as WeTrade Group, Inc. and changed its name to Next Technology Holding Inc in April 2024. Next Technology Holding Inc. was incorporated in 2019 and is headquartered in Beijing, the People Republic of China.