TeleTech (NASDAQ: TTEC) and Wix.Com (NASDAQ:WIX) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Insider and Institutional Ownership
24.8% of TeleTech shares are owned by institutional investors. Comparatively, 79.2% of Wix.Com 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 company is poised for long-term growth.
TeleTech pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. Wix.Com does not pay a dividend. TeleTech pays out 47.6% of its earnings in the form of a dividend.
This table compares TeleTech and Wix.Com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for TeleTech and Wix.Com, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TeleTech presently has a consensus target price of $43.00, indicating a potential upside of 3.61%. Wix.Com has a consensus target price of $77.21, indicating a potential upside of 32.90%. Given Wix.Com’s stronger consensus rating and higher possible upside, analysts clearly believe Wix.Com is more favorable than TeleTech.
Volatility and Risk
TeleTech has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Wix.Com has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500.
Earnings and Valuation
This table compares TeleTech and Wix.Com’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TeleTech||$1.28 billion||1.49||$33.67 million||$1.05||39.52|
|Wix.Com||$290.10 million||9.10||-$46.89 million||($1.27)||-45.75|
TeleTech has higher revenue and earnings than Wix.Com. Wix.Com is trading at a lower price-to-earnings ratio than TeleTech, indicating that it is currently the more affordable of the two stocks.
TeleTech beats Wix.Com on 9 of the 17 factors compared between the two stocks.
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.
Wix.com Ltd. (Wix) is a Web development platform enabling businesses and organizations to take businesses, brands and workflow online. The Company provides solutions that business owners can use to operate various aspects of their business online, such as selling goods, taking reservations, and scheduling and confirming appointments. These applications provide Wix registered users a bespoke front-end for customers visiting their Website, as well as a back-end management dashboard. The Company has developed these software applications for businesses in specific verticals, including retail and online stores, service providers, hotel and property management, music and restaurants. These vertical applications are integrated into the Company’s Website templates or can be installed on any existing Website and set up by the user and without the need to write code.
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