TeleTech Holdings (NASDAQ: TTEC) and Perficient (NASDAQ:PRFT) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.
Valuation and Earnings
This table compares TeleTech Holdings and Perficient’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TeleTech Holdings||$1.35 billion||1.32||$171.35 million||$0.97||40.10|
|Perficient||$452.14 million||1.45||$47.43 million||$0.42||44.41|
TeleTech Holdings has higher revenue and earnings than Perficient. TeleTech Holdings is trading at a lower price-to-earnings ratio than Perficient, indicating that it is currently the more affordable of the two stocks.
TeleTech Holdings pays an annual dividend of $0.44 per share and has a dividend yield of 1.1%. Perficient does not pay a dividend. TeleTech Holdings pays out 45.4% of its earnings in the form of a dividend.
Volatility and Risk
TeleTech Holdings has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Perficient has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.
This is a summary of recent ratings for TeleTech Holdings and Perficient, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Perficient has a consensus price target of $20.50, indicating a potential upside of 9.92%. Given Perficient’s higher possible upside, analysts clearly believe Perficient is more favorable than TeleTech Holdings.
Institutional and Insider Ownership
25.7% of TeleTech Holdings shares are owned by institutional investors. Comparatively, 75.1% of Perficient shares are owned by institutional investors. 70.0% of TeleTech Holdings shares are owned by insiders. Comparatively, 3.7% of Perficient shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares TeleTech Holdings and Perficient’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
TeleTech Holdings beats Perficient on 9 of the 15 factors compared between the two stocks.
TeleTech Holdings Company Profile
TeleTech Holdings, Inc. (TeleTech) is a customer service provider that delivers consulting, technology, growth and customer care solutions on a global scale. The Company operates through four segments: Customer Management Services (CMS), Customer Growth Services (CGS), Customer Technology Services (CTS) and Customer Strategy Services (CSS). The CMS segment designs and manages clients’ front-to-back office processes to deliver just-in-time, personalized, multi-channel interactions. The CGS segment offers integrated sales and marketing solutions to help its clients in the business-to-consumer or business-to-business markets. The CTS segment includes operational and system design consulting, customer experience technology product, implementation and integration consulting services, and management of clients cloud and on premise solutions. The CSS segment provides professional services in customer experience strategy, and system and operational process optimization.
Perficient Company Profile
Perficient, Inc. is an information technology and management consulting firm. The Company’s solutions include business intelligence and analytics, commerce, content management, custom applications, platform implementations, portals and collaboration, business integration and application program interfaces, management consulting, business process management, and customer relationship management, among others. It provides services to the healthcare (pharma and life sciences), financial services (banking and insurance), retail and consumer goods, automotive and transport products, electronics and computer hardware, telecommunications, manufacturing, business services, and leisure, and media and entertainment markets, among others.
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