Financial Survey: TeleTech (TTEC) vs. The Competition

TeleTech (NASDAQ: TTEC) is one of 184 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare TeleTech to similar companies based on the strength of its institutional ownership, profitability, dividends, analyst recommendations, valuation, earnings and risk.

Profitability

This table compares TeleTech and its peers’ 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 -22.05% -256.91% -3.95%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for TeleTech and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TeleTech 0 1 0 0 2.00
TeleTech Competitors 842 4777 7567 183 2.53

TeleTech presently has a consensus price target of $43.00, suggesting a potential upside of 8.18%. As a group, “IT Services & Consulting” companies have a potential downside of 2.97%. Given TeleTech’s higher probable upside, analysts plainly believe TeleTech is more favorable than its peers.

Insider & Institutional Ownership

24.8% of TeleTech shares are owned by institutional investors. Comparatively, 62.6% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 70.0% of TeleTech shares are owned by insiders. Comparatively, 16.9% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

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

Earnings & Valuation

This table compares TeleTech and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TeleTech $1.28 billion $33.67 million 38.22
TeleTech Competitors $2.81 billion $290.95 million 367.62

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

Dividends

TeleTech pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. TeleTech pays out 48.1% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.5% and pay out 37.7% of their earnings in the form of a dividend. TeleTech lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

TeleTech peers 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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