Analyzing TeleTech (TTEC) and Its Rivals

TeleTech (NASDAQ: TTEC) is one of 186 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its rivals? We will compare TeleTech to related companies based on the strength of its earnings, analyst recommendations, profitability, dividends, risk, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent ratings and price targets for TeleTech and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TeleTech 0 1 0 0 2.00
TeleTech Competitors 844 4789 7487 185 2.53

TeleTech currently has a consensus price target of $43.00, suggesting a potential upside of 3.61%. As a group, “IT Services & Consulting” companies have a potential downside of 1.92%. Given TeleTech’s higher probable upside, equities analysts plainly believe TeleTech is more favorable than its rivals.

Profitability

This table compares TeleTech and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TeleTech 3.45% 19.24% 8.26%
TeleTech Competitors -16.57% -273.61% -3.69%

Valuation & Earnings

This table compares TeleTech and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TeleTech $1.28 billion $33.67 million 39.52
TeleTech Competitors $2.81 billion $290.95 million 369.67

TeleTech’s rivals have higher revenue and earnings than TeleTech. TeleTech is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

TeleTech has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, TeleTech’s rivals have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.

Dividends

TeleTech pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. TeleTech pays out 47.6% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.4% and pay out 40.6% of their earnings in the form of a dividend. TeleTech lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

24.8% of TeleTech shares are owned by institutional investors. Comparatively, 61.0% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 70.0% of TeleTech shares are owned by insiders. Comparatively, 17.5% of shares of all “IT Services & Consulting” companies are owned 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.

Summary

TeleTech rivals beat TeleTech on 10 of the 15 factors compared.

TeleTech 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.

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