TeleTech (NASDAQ:TTEC) vs. Parsons (NYSE:PSN) Head to Head Comparison

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Parsons and TeleTech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parsons	2	3	11	0	2.56
TeleTech	1	2	0	0	1.67

Parsons presently has a consensus price target of $64.08, indicating a potential upside of 48.57%. Given Parsons’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Parsons is more favorable than TeleTech.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Parsons	2.50%	8.10%	3.75%
TeleTech	-10.23%	16.25%	1.60%

Institutional & Insider Ownership

98.0% of Parsons shares are owned by institutional investors. Comparatively, 38.0% of TeleTech shares are owned by institutional investors. 1.3% of Parsons shares are owned by company insiders. Comparatively, 59.4% of TeleTech shares are owned 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.

Valuation and Earnings

This table compares Parsons and TeleTech”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parsons	$6.36 billion	0.72	$241.14 million	$1.45	29.75
TeleTech	$2.14 billion	0.03	-$192.47 million	($4.30)	-0.29

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

Volatility & Risk

Parsons has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, TeleTech has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Summary

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

About Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.

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.