Critical Comparison: Xura (MESG) & TeleTech (TTEC)

Xura (NASDAQ: MESG) and TeleTech (NASDAQ:TTEC) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Dividends

TeleTech pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. Xura does not pay a dividend. TeleTech pays out 47.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Xura and TeleTech’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xura N/A N/A N/A ($1.55) -16.13
TeleTech $1.28 billion 1.47 $33.67 million $1.05 39.05

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

Analyst Recommendations

This is a breakdown of current recommendations for Xura and TeleTech, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xura 0 0 0 0 N/A
TeleTech 0 1 0 0 2.00

TeleTech has a consensus target price of $43.00, indicating a potential upside of 4.88%. Given TeleTech’s higher possible upside, analysts plainly believe TeleTech is more favorable than Xura.

Profitability

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

Net Margins Return on Equity Return on Assets
Xura -37.80% -54.10% -12.53%
TeleTech 3.45% 19.24% 8.26%

Insider & Institutional Ownership

24.9% of TeleTech shares are owned by institutional investors. 70.0% of TeleTech shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

TeleTech beats Xura on 9 of the 10 factors compared between the two stocks.

About Xura

Xura, Inc. (Xura) is a United States-based provider of digital communications services. The Company offers a portfolio of digital services solutions that enable global communications across a range of mobile devices and platforms. Its digital communications services include Xura Network Function Virtualization (NFV), Xura Rich Communications Suite (RCS), Xura Signaling Fraud Management, Xura Telco-Web Gateways, Xura Communications Suite and Xura Message Controller. Its monetization services include low credit services and value added services. The Company helps communication service providers (CSPs) and enterprises to navigate and monetize the digital ecosystem through its cloud-based offerings. It also offers Rich Web and Mobile Application Development Framework. The Company helps operators around the world to secure their networks and protect their customers. The Company offers its solutions to people through service providers and enterprises in approximately 140 countries.

About TeleTech

TeleTech Holdings, Inc. (TeleTech) is a customer service provider that delivers consulting, technology, growth and customer care solutions on a global scale. The Company operates through four segments: Customer Management Services (CMS), Customer Growth Services (CGS), Customer Technology Services (CTS) and Customer Strategy Services (CSS). The CMS segment designs and manages clients’ front-to-back office processes to deliver just-in-time, personalized, multi-channel interactions. The CGS segment offers integrated sales and marketing solutions to help its clients in the business-to-consumer or business-to-business markets. The CTS segment includes operational and system design consulting, customer experience technology product, implementation and integration consulting services, and management of clients cloud and on premise solutions. The CSS segment provides professional services in customer experience strategy, and system and operational process optimization.

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