Head to Head Contrast: Korn/Ferry International (NYSE:KFY) versus TeleTech (NASDAQ:TTEC)

TeleTech (NASDAQ:TTEC) and Korn/Ferry International (NYSE:KFY) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Valuation & Earnings

This table compares TeleTech and Korn/Ferry International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeleTech	$2.04 billion	0.04	-$192.47 million	($4.30)	-0.36
Korn/Ferry International	$2.94 billion	1.40	$277.43 million	$5.30	14.24

Korn/Ferry International has higher revenue and earnings than TeleTech. TeleTech is trading at a lower price-to-earnings ratio than Korn/Ferry International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TeleTech and Korn/Ferry International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeleTech	-10.23%	16.25%	1.60%
Korn/Ferry International	9.36%	14.43%	7.36%

Analyst Ratings

This is a summary of recent ratings for TeleTech and Korn/Ferry International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeleTech	2	1	0	0	1.33
Korn/Ferry International	0	1	4	0	2.80

Korn/Ferry International has a consensus price target of $80.25, indicating a potential upside of 6.31%. Given Korn/Ferry International’s stronger consensus rating and higher probable upside, analysts plainly believe Korn/Ferry International is more favorable than TeleTech.

Insider and Institutional Ownership

38.0% of TeleTech shares are held by institutional investors. Comparatively, 98.8% of Korn/Ferry International shares are held by institutional investors. 59.4% of TeleTech shares are held by insiders. Comparatively, 1.0% of Korn/Ferry International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

TeleTech has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Korn/Ferry International has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Dividends

TeleTech pays an annual dividend of $0.06 per share and has a dividend yield of 3.9%. Korn/Ferry International pays an annual dividend of $2.20 per share and has a dividend yield of 2.9%. TeleTech pays out -1.4% of its earnings in the form of a dividend. Korn/Ferry International pays out 41.5% 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. Korn/Ferry International has increased its dividend for 5 consecutive years. TeleTech is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Korn/Ferry International beats TeleTech on 13 of the 17 factors compared between the two stocks.

About TeleTech

TTEC Holdings, Inc. operates as a customer experience (CX) company that designs, builds, and operates technology-enabled customer experiences across digital and live interaction channels. It operates through two segments, TTEC Digital and TTEC Engage. The TTEC Digital segment provides CX technologies for contact center as a service, customer relationship management, and artificial intelligence (AI) and analytics; creates and implements strategic CX transformation roadmaps; sells, operates, and provides managed services for cloud platforms and premise based CX technologies; creates proprietary IP to support industry specific and custom client needs; and offers CX consulting services. The TTEC Engage segment provides digitally enabled CX operational and managed services; delivers data-driven omnichannel customer care, customer acquisition, growth and retention services, tech support, trust and safety, and back-office solutions; and offers solutions for AI operations, including data annotation and labeling. It serves clients in the healthcare, automotive, government, financial services, communication, technology, travel, logistics, media and entertainment, e-tail/retail, and transportation industries with operations in the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Germany, Greece, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Thailand, 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 Greenwood Village, Colorado.

About Korn/Ferry International

Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company provides executive search services to recruit board level, chief executive, other senior executive, and general management talent of organizations. It also offers organizational strategy, assessment and succession, leadership and professional development, and total reward services. In addition, the company provides RPO, business project, professional search, and outsource recruiting solutions. Further, the company offers tech-enabled solutions that identify structures, roles, capabilities, and behaviors to drive businesses. It serves public and private companies, and middle market and emerging growth companies, as well as government and non-profit organizations. The company was formerly known as Korn/Ferry International and changed its name to Korn Ferry in January 2019. Korn Ferry was founded in 1969 and is based in Los Angeles, California.