Financial Analysis: TTEC (TTEC) and StarTek (SRT)
TTEC (NYSE: SRT) and StarTek (NYSE:SRT) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
This table compares TTEC and StarTek’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
25.6% of TTEC shares are held by institutional investors. Comparatively, 39.8% of StarTek shares are held by institutional investors. 70.0% of TTEC shares are held by company insiders. Comparatively, 17.8% of StarTek shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares TTEC and StarTek’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TTEC||$1.48 billion||0.79||$7.25 million||$1.80||14.06|
|StarTek||$292.60 million||0.80||-$1.27 million||($0.08)||-78.75|
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.
Risk and Volatility
TTEC has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, StarTek has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500.
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 raised its dividend for 2 consecutive years.
This is a summary of current recommendations and price targets for TTEC and StarTek, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TTEC currently has a consensus price target of $43.00, indicating a potential upside of 69.96%. StarTek has a consensus price target of $12.67, indicating a potential upside of 101.06%. Given StarTek’s stronger consensus rating and higher possible upside, analysts plainly believe StarTek is more favorable than TTEC.
TTEC beats StarTek on 11 of the 17 factors compared between the two stocks.
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.
StarTek Company Profile
StarTek, Inc. provides business process outsourcing services in the United States, Canada, Honduras, Jamaica, and the Philippines. It operates in three segments: Domestic, Nearshore, and Offshore. The company's service offerings include customer care, sales support, inbound sales, complex order processing, accounts receivable management, technical and product support, up-sell and cross-sell opportunities, customer intelligence analytics, and other industry-specific processes. It offers technical and product support services through telephone, e-mail, chat, facsimile, and Internet; and sales support services comprising lead generation, direct sales, account management and retention programs, and marketing analysis and modeling. The company's provisioning and order processing services comprise full life cycle order management and technical sales support for high-end telecommunications services, such as wire-line, wireless, data, and customer premise equipment; order fallout from its clients' automated systems, billing review, revenue recovery, and quality assurance; direct-to-consumer services, such as provisioning, order processing, and transfer of accounts between client service providers. Its receivables management services consist of first and third party collections services for clients in the telecommunication, cable and media, and healthcare industries; healthcare services include customer care, sales support, accounts receivable management, remote patient care, and medical triage to providers, payers, pharmaceutical, and medical devices; and industry-specific processes comprise training curriculum development, workforce management, customer analytics, quality monitoring services, and dispositions. The company was founded in 1987 and is headquartered in Greenwood Village, Colorado.
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