Contrasting Evertz Technologies (OTCMKTS:EVTZF) and HMS Networks AB (publ) (OTCMKTS:HMNKF)

Evertz Technologies (OTCMKTS:EVTZF) and HMS Networks AB (publ) (OTCMKTS:HMNKF) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Ratings

This is a breakdown of current ratings and target prices for Evertz Technologies and HMS Networks AB (publ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evertz Technologies	0	0	1	0	3.00
HMS Networks AB (publ)	0	0	0	0	0.00

Evertz Technologies currently has a consensus target price of $19.50, indicating a potential upside of 130.94%. Given Evertz Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Evertz Technologies is more favorable than HMS Networks AB (publ).

Dividends

Evertz Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 5.7%. HMS Networks AB (publ) pays an annual dividend of $2.25 per share and has a dividend yield of 5.8%. Evertz Technologies pays out 51.6% of its earnings in the form of a dividend. HMS Networks AB (publ) pays out 40.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HMS Networks AB (publ) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

6.2% of Evertz Technologies shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Evertz Technologies and HMS Networks AB (publ)”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evertz Technologies	N/A	N/A	N/A	$0.93	9.08
HMS Networks AB (publ)	N/A	N/A	N/A	$5.61	6.95

HMS Networks AB (publ) is trading at a lower price-to-earnings ratio than Evertz Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Evertz Technologies and HMS Networks AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evertz Technologies	N/A	N/A	N/A
HMS Networks AB (publ)	N/A	N/A	N/A

Summary

Evertz Technologies beats HMS Networks AB (publ) on 5 of the 8 factors compared between the two stocks.

About Evertz Technologies

Evertz Technologies Limited engages in the design, manufacture, and distribution of video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets in Canada, the United States, and internationally. The company offers contribution and distribution encoder, decoder, receiver, and processing products; and control panels, intelligent operations and controls, big data analytics, and network management systems, as well as orchestration, monitoring, and analytics solutions. It also provides video encoders, decoders, and multiplexing products comprising encoders/transcoders, decoders, multiplexers, monitoring and auto-changeover products, and enterprise products; optical media transport products; and audio consoles and processing products, such as mixing consoles, routing and I/O products, summing and processing products, and IP audio gateways. In addition, the company offers asset management and playout products, consisting of asset management, ingest, playout and branding, and transcoding/conforming products; live media production products; routers; flexible media edge products; and IP audio/video processing, media gateway, switch routing, timing, and software defined network orchestration products. Further, it provides multiviewers solutions comprising IP and SDI multiviewers, MVP, and accessories; Radio Frequency (RF) products; timing and synchronization products; and infrastructure and conversion products. The company serves content creators, broadcasters, specialty channels, and television service providers. Evertz Technologies Limited was founded in 1966 and is headquartered in Burlington, Canada.

About HMS Networks AB (publ)

HMS Networks AB (publ) engages in the provision of products that enable industrial equipment to communicate and share information worldwide. The company offers Anybus Embedded that offers multi-network connectivity with a single development project; Anybus Gateways, a gateway for connecting devices, machines, systems, or networks; Anybus Wireless that allows to connect machines and devices over Bluetooth, Wi-Fi, cellular networks, and industrial Ethernet; and Anybus Diagnostics, which offers tools and services to monitor, analyze, and troubleshoot industrial networks. It also provides Ewon Cosy, an industrial VPN device for secure remote access; Ewon Flexy, an industrial device and IIoT gateways for flexible remote access and data services; Ewon Flexy Extension Cards, which allow to keep up with the evolution of communication technologies while protecting investment in the device; and Ewon Talk2M, an industrial cloud that enables its customers to access their assets; Ewon Netbiter, a gateway to remote connectivity for energy generation systems; and Argos, a IIoT cloud dashboard, as well as offers other IIoT softwares. In addition, the company offers Intesis protocol translators, air conditioner interfaces, AC Cloud control, and ST cloud control solutions; and PC interfaces, repeaters, bridges, routers, gateways, and safety solutions under the Ixxat brand. Further, it provides Owasys, a wireless communication platforms, as well as offers brand labeling, system, software, and maintenance solutions. The company offers its solutions to device manufactures, machine builders, system integrators, and end users. HMS Networks AB (publ) was founded in 1988 and is headquartered in Halmstad, Sweden.