EVO Payments (NASDAQ:EVOP) and Gravity (NASDAQ:GRVY) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Institutional and Insider Ownership
52.7% of EVO Payments shares are held by institutional investors. Comparatively, 7.3% of Gravity shares are held by institutional investors. 51.0% of EVO Payments shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for EVO Payments and Gravity, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
EVO Payments | 0 | 3 | 4 | 0 | 2.57 |
Gravity | 0 | 0 | 0 | 0 | N/A |
EVO Payments currently has a consensus target price of $27.2857, suggesting a potential downside of 3.82%. Given EVO Payments' higher possible upside, research analysts clearly believe EVO Payments is more favorable than Gravity.
Profitability
This table compares EVO Payments and Gravity's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
EVO Payments | -1.37% | -6.43% | 2.97% |
Gravity | 13.14% | 35.64% | 23.36% |
Volatility and Risk
EVO Payments has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500. Comparatively, Gravity has a beta of -0.37, indicating that its share price is 137% less volatile than the S&P 500.
Earnings & Valuation
This table compares EVO Payments and Gravity's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
EVO Payments | $485.78 million | 4.83 | $-10,100,000.00 | $0.66 | 42.98 |
Gravity | $307.18 million | 2.89 | $31.90 million | N/A | N/A |
Gravity has lower revenue, but higher earnings than EVO Payments.
Summary
EVO Payments beats Gravity on 7 of the 12 factors compared between the two stocks.