Contrasting StarTek (SRT) & Cloudera (CLDR)

StarTek (NYSE: SRT) and Cloudera (NYSE:CLDR) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

47.0% of StarTek shares are owned by institutional investors. Comparatively, 36.6% of Cloudera shares are owned by institutional investors. 17.8% of StarTek shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares StarTek and Cloudera’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
StarTek 0.79% 5.02% 2.35%
Cloudera -119.74% N/A -39.42%

Valuation & Earnings

This table compares StarTek and Cloudera’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
StarTek $307.20 million 0.55 $390,000.00 $0.14 74.29
Cloudera $261.02 million 9.98 -$187.31 million ($7.20) -2.56

StarTek has higher revenue and earnings than Cloudera. Cloudera is trading at a lower price-to-earnings ratio than StarTek, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for StarTek and Cloudera, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StarTek 0 2 1 0 2.33
Cloudera 0 0 4 0 3.00

StarTek presently has a consensus price target of $12.33, suggesting a potential upside of 18.59%. Cloudera has a consensus price target of $22.00, suggesting a potential upside of 19.24%. Given Cloudera’s stronger consensus rating and higher possible upside, analysts clearly believe Cloudera is more favorable than StarTek.

Summary

StarTek beats Cloudera on 9 of the 13 factors compared between the two stocks.

StarTek Company Profile

StarTek, Inc. is a customer engagement business process outsourcing (BPO) services provider, delivering customer care solutions. The Company operates through three segments: Domestic, Nearshore and Offshore. As of December 31, 2016, its Domestic segment included the operations of 13 facilities in the United States and one facility in Canada; its Offshore segment included the operations of four facilities in the Philippines, and its Nearshore segment included the operations of two facilities in Honduras and one facility in Jamaica. 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. Its suite of order processing services ranges from enterprise level project management to direct-to-consumer order processing.

Cloudera Company Profile

Cloudera, Inc. is a developer of platform for data management, machine learning and advanced analytics. The Company allows enterprises to operate, manage and move workloads across multiple architectures, mixing on premises and cloud environments, including all major public cloud infrastructure providers. It operates through two operating segments: subscription and services. Its products include Cloudera Enterprise Data Hub, Cloudera Analytic BD, Cloudera Operational DB, Cloudera Data Science & Engineering, and Cloud Essentials. The Company offers Cloudera Data Science for programmatic preparation, predictive modeling and machine learning; Cloudera Real Time for online, streaming and rea ltime applications; and Cloudera Analytics for business intelligence and structured query language (SQL) analytics. It has developed the hybrid open source software (HOSS) development model, which helps customers in managing, operating and securing their data and data architectures.

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