Head to Head Comparison: NetScout Systems (NTCT) versus Sykes Enterprises, (NASDAQ:SYKE)

Sykes Enterprises, (NASDAQ: SYKE) and NetScout Systems (NASDAQ:NTCT) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Earnings & Valuation



This table compares Sykes Enterprises, and NetScout Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Sykes Enterprises, $1.46 billion 0.84 $62.39 million $1.61 17.83
NetScout Systems $1.16 billion 2.14 $33.29 million $0.17 168.07

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

Analyst Ratings

This is a summary of current recommendations for Sykes Enterprises, and NetScout Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sykes Enterprises, 0 1 2 0 2.67
NetScout Systems 0 3 1 0 2.25

Sykes Enterprises, currently has a consensus target price of $33.67, suggesting a potential upside of 17.31%. NetScout Systems has a consensus target price of $32.33, suggesting a potential upside of 13.17%. Given Sykes Enterprises,’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sykes Enterprises, is more favorable than NetScout Systems.

Risk and Volatility

Sykes Enterprises, has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, NetScout Systems has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.

Insider & Institutional Ownership

85.6% of Sykes Enterprises, shares are owned by institutional investors. 2.7% of Sykes Enterprises, shares are owned by company insiders. Comparatively, 3.5% of NetScout Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Sykes Enterprises, and NetScout Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sykes Enterprises, 4.32% 11.33% 6.81%
NetScout Systems 1.52% 5.15% 3.49%

Summary

Sykes Enterprises, beats NetScout Systems on 10 of the 14 factors compared between the two stocks.

About Sykes Enterprises,

Sykes Enterprises, Incorporated is engaged in providing outsourced customer contact management solutions and services in the business process outsourcing (BPO) arena on a global basis. The Company has operations in two segments: the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, and EMEA, which includes Europe, the Middle East and Africa. The Company provides its service to clients from its locations in the United States, Canada, Latin America, Australia, the Asia Pacific Rim, Europe and Africa. It serves a range of clients, including medium-sized businesses and public institutions, which span the communications, financial services, technology/consumer, transportation and leisure, healthcare and other industries. Its Americas and EMEA groups primarily provide customer engagement services. The Company’s outsourced customer contact management services include customer care, technical support and customer acquisition.

About NetScout Systems

NetScout Systems, Inc. (NetScout) provides operational intelligence and performance analytics for service assurance and cyber security solutions. The Company’s solutions are used in various service provider, enterprise and government networks. Its nGenius and Infinistream technologies, along with certain product lines from the acquired businesses, enable information technology (IT) organizations to manage service delivery quality, and identify and address business service performance issues and security threats. The Company’s manufacturing operations consist of final product assembly, configuration and testing. The Company’s nGeniusONE Service Assurance Solution is used to support NetScout’s enterprise, service provider and government customers. The Company’s Intelligent Data Sources, marketed under the Infinistream brand, provide collection and analysis of high-volume packet-flow data from across the network that is displayed through the nGeniusONE Service Assurance Solution.

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