Head-To-Head Comparison: Lucas GC (NASDAQ:LGCL) versus TeleTech (NASDAQ:TTEC)

Lucas GC (NASDAQ:LGCL) and TeleTech (NASDAQ:TTEC) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Profitability

This table compares Lucas GC and TeleTech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lucas GC	N/A	N/A	N/A
TeleTech	-0.84%	8.95%	1.47%

Analyst Ratings

This is a summary of recent recommendations and price targets for Lucas GC and TeleTech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucas GC	1	0	0	0	1.00
TeleTech	1	4	0	0	1.80

TeleTech has a consensus price target of $3.50, indicating a potential downside of 1.96%. Given TeleTech’s stronger consensus rating and higher possible upside, analysts plainly believe TeleTech is more favorable than Lucas GC.

Institutional & Insider Ownership

38.0% of TeleTech shares are held by institutional investors. 59.2% of TeleTech shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Lucas GC has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, TeleTech has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lucas GC and TeleTech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucas GC	$145.69 million	0.04	$5.45 million	N/A	N/A
TeleTech	$2.21 billion	0.08	-$320.96 million	($0.38)	-9.39

Lucas GC has higher earnings, but lower revenue than TeleTech.

Summary

TeleTech beats Lucas GC on 9 of the 11 factors compared between the two stocks.

About Lucas GC

Lucas GC Limited, through its subsidiaries, provides online agent-centric human capital management services based on platform-as-a-service (PaaS) in the People’s Republic of China. Its Star Career and Columbus platforms enables registered users to receive customized job recommendations and work as talent scouts to source suitable candidates for its corporate customers through their social network, as well as receive trainings and other value-added services. The company’s platform provides permanent and flexible employment recruitment services; outsourcing services primarily for technology-related projects to design, develop, and deliver the projects within budget and on time with acceptable quality; information technology services to generate sales leads for its corporate customers; and training services comprising career-related certification programs. In addition, it engages in the media and entertainment business, as well as provides management consulting services. Lucas GC Limited was founded in 2011 and is based in Beijing, China. Lucas GC Limited operates as a subsidiary of HTL Lucky Holding Limited.

About TeleTech

TTEC Holdings, Inc. operates as a customer experience (CX) company that designs, builds, and operates technology-enabled customer experiences across digital and live interaction channels. It operates through two segments, TTEC Digital and TTEC Engage. The TTEC Digital segment provides CX technologies for contact center as a service, customer relationship management, and artificial intelligence (AI) and analytics; creates and implements strategic CX transformation roadmaps; sells, operates, and provides managed services for cloud platforms and premise based CX technologies; creates proprietary IP to support industry specific and custom client needs; and offers CX consulting services. The TTEC Engage segment provides digitally enabled CX operational and managed services; delivers data-driven omnichannel customer care, customer acquisition, growth and retention services, tech support, trust and safety, and back-office solutions; and offers solutions for AI operations, including data annotation and labeling. It serves clients in the healthcare, automotive, government, financial services, communication, technology, travel, logistics, media and entertainment, e-tail/retail, and transportation industries with operations in the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Germany, Greece, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Thailand, 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 Greenwood Village, Colorado.