Bandwidth Inc. (BAND) vs Evertec, Inc. (EVTC)

Bandwidth Inc. and Evertec, Inc. are both Software Infrastructure companies. Evertec, Inc. is the larger, with a market value of $1.9B against $1.6B — 1.2× the size. Evertec, Inc. trades at the lower P/E: 20.3× against 722×. Evertec, Inc. grew revenue faster over the last twelve months: 12.4% against 9.25%. Evertec, Inc. has the higher net margin (9.80% vs 0.27%) and the higher return on invested capital (6.80% vs −1.77%). Across the 22 metrics below, Evertec, Inc. leads on 17 and Bandwidth Inc. on 5.

Valuation

Metric BAND EVTC Software Infrastructure median
P/E 722.33 20.25 28.38
P/S 1.68 1.91 2.98
P/B 3.50 2.95 2.93
Price to free cash flow 20.67 14.12 16.28
EV/EBITDA 30.37 8.71 13.92
EV/Sales 1.93 2.91 2.90
Earnings yield 0.14% 4.94% 0.14%
Free cash flow yield 4.84% 7.08% 1.24%

Profitability

Metric BAND EVTC Software Infrastructure median
Gross margin 37.23% 51.12% 61.00%
Operating margin (1.82%) 17.93% 0.00%
Net margin 0.27% 9.80% 0.00%
Free cash flow margin 8.13% 13.51% 1.67%
Return on equity 0.58% 15.49% 0.60%
Return on assets 0.21% 4.39% 0.00%
Return on invested capital (1.77%) 6.80% 0.00%

Growth

Metric BAND EVTC Software Infrastructure median
Revenue growth (TTM) 9.25% 12.36% 13.41%
EPS growth (last fiscal year) (79.17%) 27.17% 27.10%
Revenue growth, 5-year CAGR 17.05% 12.79% 15.57%
Net income growth, 5-year CAGR 0.00% 6.28% 0.00%

Health

Metric BAND EVTC Software Infrastructure median
Debt to equity 0.87 2.00 0.05
Current ratio 2.04 1.70 1.55
Net debt to EBITDA 3.09 2.36 0.08

Dividend

Metric BAND EVTC Software Infrastructure median
Dividend yield — 0.64% 1.20%
Payout ratio — 0.13 0.29

Size

Metric BAND EVTC Software Infrastructure median
Market cap 1.60b 1.88b 752.37m

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