StarTek (NASDAQ: TTEC) and TTEC (NASDAQ:TTEC) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.
TTEC pays an annual dividend of $0.54 per share and has a dividend yield of 2.1%. StarTek does not pay a dividend. TTEC pays out 30.0% of its earnings in the form of a dividend. TTEC has increased its dividend for 2 consecutive years.
Valuation and Earnings
This table compares StarTek and TTEC’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|StarTek||$292.60 million||0.76||-$1.27 million||($0.08)||-75.25|
|TTEC||$1.48 billion||0.81||$7.25 million||$1.80||14.36|
TTEC has higher revenue and earnings than StarTek. StarTek is trading at a lower price-to-earnings ratio than TTEC, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
14.5% of StarTek shares are owned by institutional investors. Comparatively, 24.7% of TTEC shares are owned by institutional investors. 17.8% of StarTek shares are owned by insiders. Comparatively, 70.0% of TTEC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and target prices for StarTek and TTEC, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
StarTek currently has a consensus price target of $12.67, indicating a potential upside of 110.41%. TTEC has a consensus price target of $43.00, indicating a potential upside of 66.34%. Given StarTek’s stronger consensus rating and higher probable upside, analysts clearly believe StarTek is more favorable than TTEC.
Volatility & Risk
StarTek has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, TTEC has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
This table compares StarTek and TTEC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
TTEC beats StarTek on 13 of the 17 factors compared between the two stocks.
StarTek Company Profile
StarTek, Inc. operates as a customer engagement business process outsourcing services provider that delivers contact center and customer engagement solutions. It offers technical and product support, sales support, provisioning and order processing, receivables management, healthcare services, up-sell and cross-sell program, and customer intelligence analytics; and additional services, such as technology enabled and human interaction to other industry-specific processes, including training curriculum development, workforce management, customer analytics, quality monitoring services, and dispositions. The company serves client programs using a variety of multi-channel customer interaction capabilities, including voice, chat, email, social media, interactive voice response, and back-office support. It operates engagement centers in the United States, Canada, Honduras, Jamaica, and the Philippines. The company was founded in 1987 and is headquartered in Greenwood Village, Colorado.
TTEC Company Profile
TTEC Holdings, Inc. designs, builds, and operates omni-channel customer experiences. It operates through four segments: Customer Management Services (CMS), Customer Growth Services (CGS), Customer Technology Services (CTS), and Customer Strategy Services (CSS). The CMS segment offers customer experience delivery solutions, which integrate technology with customer experience professionals to optimize the customer experience across various channels and stages of the customer lifecycle from an onshore, offshore, or work-from-home environments. The CGS segment provides technology-enabled sales and marketing solutions, including sales advisory, search engine optimization, digital demand generation, and lead qualification, as well as acquisition sales, growth, and retention services. The CTS segment offers system design consulting, customer experience technology product, and implementation and integration consulting services, as well as manages clients' cloud and on-premise solutions. The CSS segment provides professional services in customer experience strategy and operations, insights, system and operational process optimization, and culture development and knowledge management. TTEC Holdings, Inc. also offers digital trust and safety, and health services. The company serves clients in the automotive, communication, financial services, government, healthcare, logistics, media and entertainment, retail, technology, transportation, and travel industries. It has operations in the United States, Australia, Belgium, Brazil, Bulgaria, Canada, China, Costa Rica, Germany, Hong Kong, India, Ireland, Lebanon, Macedonia, Mexico, New Zealand, the Philippines, Poland, Singapore, South Africa, Thailand, Turkey, the United Arab Emirates, and the United Kingdom. The company was formerly known as TeleTech Holdings, Inc. and changed its name to TTEC Holdings, Inc. in January 2018. TTEC Holdings, Inc. was founded in 1982 and is headquartered in Englewood, Colorado.
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