EVTC vs. MA: Which Stock Is the Better Value Option?

Core Viewpoint - The article compares Evertec (EVTC) and MasterCard (MA) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - Evertec has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while MasterCard has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting that EVTC has an improving earnings outlook [3] Group 2: Valuation Metrics - Evertec has a forward P/E ratio of 11.53, significantly lower than MasterCard's forward P/E of 36.63 [5] - The PEG ratio for Evertec is 1.34, while MasterCard's PEG ratio is 2.32, indicating that EVTC is expected to grow earnings at a more favorable rate relative to its price [5] - Evertec's P/B ratio is 4.52, compared to MasterCard's P/B of 64.97, further highlighting the valuation disparity [6] Group 3: Value Grades - Based on various valuation metrics, Evertec holds a Value grade of A, while MasterCard has a Value grade of D, indicating that EVTC is the superior value option at this time [6]