Contrasting EVERTEC (NYSE:EVTC) and Life360 (NASDAQ:LIF)

EVERTEC (NYSE:EVTC) and Life360 (NASDAQ:LIF) are both mid-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

96.8% of EVERTEC shares are owned by institutional investors. Comparatively, 20.0% of Life360 shares are owned by institutional investors. 0.8% of EVERTEC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares EVERTEC and Life360″s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVERTEC	$823.71 million	2.67	$79.72 million	$1.28	26.98
Life360	$342.92 million	8.99	-$28.17 million	N/A	N/A

EVERTEC has higher revenue and earnings than Life360.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for EVERTEC and Life360, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVERTEC	1	1	2	0	2.25
Life360	0	1	6	1	3.00

EVERTEC presently has a consensus target price of $35.00, indicating a potential upside of 1.36%. Life360 has a consensus target price of $47.00, indicating a potential upside of 13.88%. Given Life360’s stronger consensus rating and higher possible upside, analysts clearly believe Life360 is more favorable than EVERTEC.

Profitability

This table compares EVERTEC and Life360’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%
Life360	-4.72%	-4.03%	-3.16%

Summary

EVERTEC beats Life360 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 Life360

Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.