Critical Analysis: Everi (EVRI) and Zurich Insurance Group (ZURVY)

Everi (OTCMKTS: ZURVY) and Zurich Insurance Group (OTCMKTS:ZURVY) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

86.5% of Everi shares are held by institutional investors. Comparatively, 0.3% of Zurich Insurance Group shares are held by institutional investors. 6.0% of Everi shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.



Analyst Recommendations

This is a summary of recent recommendations for Everi and Zurich Insurance Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everi 0 0 3 0 3.00
Zurich Insurance Group 1 3 1 0 2.00

Everi presently has a consensus target price of $11.00, suggesting a potential upside of 37.33%. Given Everi’s stronger consensus rating and higher probable upside, equities analysts plainly believe Everi is more favorable than Zurich Insurance Group.

Profitability

This table compares Everi and Zurich Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everi -3.21% N/A -0.53%
Zurich Insurance Group N/A N/A N/A

Risk & Volatility

Everi has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Zurich Insurance Group has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Dividends

Zurich Insurance Group pays an annual dividend of $0.13 per share and has a dividend yield of 0.4%. Everi does not pay a dividend. Zurich Insurance Group pays out 6.5% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Everi and Zurich Insurance Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everi $974.95 million 0.57 -$51.90 million ($0.31) -25.84
Zurich Insurance Group $63.96 billion 0.71 $3.00 billion $1.99 15.01

Zurich Insurance Group has higher revenue and earnings than Everi. Everi is trading at a lower price-to-earnings ratio than Zurich Insurance Group, indicating that it is currently the more affordable of the two stocks.

Summary

Zurich Insurance Group beats Everi on 8 of the 15 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 Payments. 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 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 Central Credit, a gaming patron credit bureau service; Everi Compliance, a suite of compliance software to assist with anti-money laundering regulations, as well as assist casinos in filing required tax forms; 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.

Zurich Insurance Group Company Profile

Zurich Insurance Group AG, together with its subsidiaries, provides insurance products and related services in Europe, North America, Latin America, and the Asia Pacific. The company operates through Property & Casualty Regions, Life Regions, Farmers, and Non-Core Businesses segments. It offers car, home, travel, general liability, life and critical illness, and other insurance products; and saving and investment, and pension and retirement planning products. The company also provides property, casualty, management or professional liability, trade credit, political risk, marine, automotive, and cyber risk insurance products; and international programs, risk engineering, claims, and captive services. In addition, it offers employee benefits and group risk solutions, corporate investment plans, multi-employer savings plans, pension plans, captive services, and pooling solutions, as well as international programs for employees. Further, the company provides non-claims administrative and management services to the farmers' exchanges; and reinsurance services. It serves individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. Zurich Insurance Group AG was founded in 1872 and is headquartered in Zurich, Switzerland.

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