Priority Technology (NASDAQ:PRTH) & TeleTech (NASDAQ:TTEC) Critical Survey

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

Institutional and Insider Ownership

38.0% of TeleTech shares are owned by institutional investors. Comparatively, 11.5% of Priority Technology shares are owned by institutional investors. 59.2% of TeleTech shares are owned by insiders. Comparatively, 66.2% of Priority Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for TeleTech and Priority Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeleTech	1	4	0	0	1.80
Priority Technology	0	3	2	0	2.40

TeleTech currently has a consensus target price of $3.50, suggesting a potential upside of 40.00%. Priority Technology has a consensus target price of $8.50, suggesting a potential upside of 53.15%. Given Priority Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Priority Technology is more favorable than TeleTech.

Volatility & Risk

TeleTech has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Priority Technology has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Earnings and Valuation

This table compares TeleTech and Priority Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeleTech	$2.14 billion	0.06	-$320.96 million	($0.38)	-6.58
Priority Technology	$879.70 million	0.52	$23.38 million	$0.53	10.47

Priority Technology has lower revenue, but higher earnings than TeleTech. TeleTech is trading at a lower price-to-earnings ratio than Priority Technology, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TeleTech and Priority Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeleTech	-9.01%	13.78%	2.32%
Priority Technology	5.78%	-60.29%	4.35%

Summary

Priority Technology beats TeleTech on 11 of the 14 factors compared between the two stocks.

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.

About Priority Technology

Priority Technology Holdings, Inc. operates as a payment technology company in the United States. The company operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business (B2B) Payments, and Enterprise Payments. It offers SMB payments processing solutions for B2C transactions through independent sales organizations, financial institutions, independent software vendors, and other referral partners through its MX product suite, which includes MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing. The company also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, it provides curated managed services; payment-adjacent technologies to facilitate the acceptance of electronic payments from customers; and Plastiq payables management software, which helps businesses in improving cash flow with instant access to working capital. Further, the company offers embedded finance and BaaS solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. It serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. The company was founded in 2005 and is headquartered in Alpharetta, Georgia.