EVTC vs. MA: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Evertec (EVTC) is currently viewed as a better value opportunity compared to MasterCard (MA) in the Financial Transaction Services sector [1]. Group 1: Zacks Rank and Earnings Outlook - Evertec has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while MasterCard has a Zacks Rank of 3 (Hold) [3]. - The improving earnings outlook for Evertec suggests a favorable position for value investors [3]. Group 2: Valuation Metrics - Evertec has a forward P/E ratio of 8.14, significantly lower than MasterCard's forward P/E of 34.46 [5]. - The PEG ratio for Evertec is 1.02, while MasterCard's PEG ratio is 2.22, indicating that Evertec is more reasonably priced relative to its expected earnings growth [5]. - Evertec's P/B ratio stands at 2.8, compared to MasterCard's P/B of 64.21, further highlighting Evertec's more attractive valuation [6]. Group 3: Value Grades - Evertec has received a Value grade of A, while MasterCard has a Value grade of D, reflecting the stronger valuation metrics of Evertec [6]. - The combination of stronger estimate revision activity and more attractive valuation metrics positions Evertec as the superior option for value investors [7].