Financial Survey: EVERTEC (NYSE:EVTC) and ChinaCache International (OTCMKTS:CCIHY)

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

Analyst Ratings

This is a breakdown of current recommendations for EVERTEC and ChinaCache International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVERTEC	2	0	1	0	1.67
ChinaCache International	0	0	0	0	N/A

EVERTEC currently has a consensus target price of $34.33, indicating a potential upside of 1.62%. Given EVERTEC’s higher possible upside, analysts clearly believe EVERTEC is more favorable than ChinaCache International.

Valuation and Earnings

This table compares EVERTEC and ChinaCache International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVERTEC	$785.12 million	2.77	$79.72 million	$0.99	34.13
ChinaCache International	$131.95 million	0.01	-$7.42 million	N/A	N/A

EVERTEC has higher revenue and earnings than ChinaCache International.

Profitability

This table compares EVERTEC and ChinaCache International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EVERTEC	8.84%	32.08%	9.55%
ChinaCache International	N/A	N/A	N/A

Institutional & Insider Ownership

96.8% of EVERTEC shares are owned by institutional investors. 0.8% of EVERTEC shares are owned by insiders. Comparatively, 13.7% of ChinaCache International shares are owned by 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.

Summary

EVERTEC beats ChinaCache International on 9 of the 10 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 ChinaCache International

ChinaCache International Holdings Ltd., an investment holding company, provides content and application delivery services in the People's Republic of China. The company offers a portfolio of services and solutions to businesses, government agencies, and other enterprises to enhance the reliability and scalability of their online services and applications. Its services include Web page content, file transfer, and rich media streaming services; and guaranteed application services for Websites that have various features, such as online booking and ordering, real-time stock quotes, and online surveys. It also provides managed Internet data services for content and application delivery, and network infrastructure and security; content bridging services for mobile telecommunications carriers; Internet exchange and data center services; and mobile Internet solutions. In addition, the company offers various value-added services, such as geo-content acceleration service, performance evaluation modules, scalable service routing service, link anti-hijack service, user behavior analysis service, Website performance evaluation service, all-around application acceleration solution, and cloud extension solution. Further, the company provides technical consultation services; and leases mechanical equipment. Additionally, it engages in computer hardware and technology development; and real estate management businesses. The company was founded in 1998 and is headquartered in Beijing, the People's Republic of China.