Analyzing Everi (NYSE:EVRI) and International Game Technology (IGT)

Everi (NYSE:EVRI) and International Game Technology (NYSE:IGT) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Valuation & Earnings

This table compares Everi and International Game Technology’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everi $469.52 million 1.49 $12.36 million $0.10 99.60
International Game Technology $4.83 billion 0.60 -$21.35 million $0.98 14.45

Everi has higher earnings, but lower revenue than International Game Technology. International Game Technology is trading at a lower price-to-earnings ratio than Everi, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Everi has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, International Game Technology has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Profitability

This table compares Everi and International Game Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everi 2.63% -6.27% 0.49%
International Game Technology -0.44% 7.64% 1.42%

Dividends

International Game Technology pays an annual dividend of $0.80 per share and has a dividend yield of 5.6%. Everi does not pay a dividend. International Game Technology pays out 81.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

93.5% of Everi shares are owned by institutional investors. Comparatively, 48.1% of International Game Technology shares are owned by institutional investors. 6.0% of Everi shares are owned by company insiders. Comparatively, 1.2% of International Game Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Everi and International Game Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everi 0 0 3 1 3.25
International Game Technology 0 1 8 0 2.89

Everi currently has a consensus target price of $10.13, indicating a potential upside of 1.71%. International Game Technology has a consensus target price of $23.64, indicating a potential upside of 66.97%. Given International Game Technology’s higher possible upside, analysts plainly believe International Game Technology is more favorable than Everi.

Summary

Everi beats International Game Technology on 10 of the 17 factors compared between the two stocks.

Everi Company Profile

Everi Holdings Inc. provides technology solutions for the casino gaming industry in the United States, Europe, Canada, the Caribbean, Central America, and Asia. The company operates in two segments, Games and FinTech. It offers gaming products, such as classic mechanical reel games, video reel games, core HDX, Empire MPX and the Texan HDX, wide area progressive games, and slot tournament systems; and sells player terminals, licenses, back office systems, and other related equipment. The company also provides Cash access services; Casino Cash Plus 3-in-1 ATM, a cash-dispensing machine that enables ATM cash withdrawals, POS debit card cash access transactions, and credit card cash access transactions; check verification and warranty services; CashClub that provides gaming establishments with a single dashboard interface to streamline credit and debit card cash access transaction processing and check warranty transactions; fully integrated kiosks that provide multiple functions to the casino floor; and other integrated kiosk solutions. In addition, it offers Everi Compliance, a suite of compliance software to assist with anti-money laundering regulations; Central Credit, a gaming patron credit bureau service; non-ATM terminals that perform authorizations for credit card cash access and POS debit card transactions; database services; and an online payment processing solution for gaming operators in states that offer intra-state, and Internet-based gaming and lottery activities. The company was formerly known as Global Cash Access Holdings, Inc. and changed its name to Everi Holdings Inc. in August 2015. Everi Holdings Inc. was founded in 1998 and is headquartered in Las Vegas, Nevada.

International Game Technology Company Profile

International Game Technology PLC operates and provides technology products and services across lotteries, electronic gaming machines, sports betting, and interactive gaming markets worldwide. The company operates through four segments: North America Gaming and Interactive, North America Lottery, International, and Italy. It designs, sells, and operates a suite of point-of-sale terminals that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services. The company also provides video lottery terminals (VLT), VLT central systems, and VLT games; and amusement with prize machines and games to licensed operators. In addition, it provides sports betting platform that offers betting on sports and motor sports events, as well as non-sporting events; interactive and social gaming, which enables game play through the Internet; gaming management systems for casino management, customer relationship management, patron management, and server-based gaming; and designs, develops, manufactures, and provides cabinets, games, systems, and software. Further, the company processes commercial transactions, such as prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, prepaid card recharges, and stamp duty and money transfers services. Additionally, it designs, manufactures, and distributes poker, online casino table games, slot games, bingo, virtual reality, and player account management systems services. The company was formerly known as GTECH S.p.A. and changed its name to International Game Technology PLC in April 2015. The company was incorporated in 2014 and is headquartered in London, the United Kingdom.

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