Reviewing TeleTech (TTEC) & Its Rivals

TeleTech (NASDAQ:TTEC) is one of 203 public companies in the “Professional Services” industry, but how does it contrast to its peers? We will compare TeleTech to related businesses based on the strength of its profitability, risk, earnings, valuation, analyst recommendations, institutional ownership and dividends.

Volatility and Risk

TeleTech has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, TeleTech’s peers have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

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	-10.23%	16.25%	1.60%
TeleTech Competitors	-0.59%	20.60%	4.33%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeleTech	2	1	0	0	1.33
TeleTech Competitors	1579	6433	9163	430	2.48

As a group, “Professional Services” companies have a potential upside of 26.92%. Given TeleTech’s peers stronger consensus rating and higher probable upside, analysts plainly believe TeleTech has less favorable growth aspects than its peers.

Insider & Institutional Ownership

38.0% of TeleTech shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are owned by institutional investors. 59.4% of TeleTech shares are owned by insiders. Comparatively, 17.2% of shares of all “Professional Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
TeleTech	$2.14 billion	-$192.47 million	-0.37
TeleTech Competitors	$3.29 billion	$228.38 million	34.89

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.

Summary

TeleTech peers beat TeleTech on 12 of the 13 factors compared.

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.