Sykes Enterprises (NASDAQ: SYKE) and RPX (NASDAQ:RPXC) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
This is a summary of current ratings and target prices for Sykes Enterprises and RPX, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares Sykes Enterprises and RPX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
88.8% of Sykes Enterprises shares are owned by institutional investors. Comparatively, 89.7% of RPX shares are owned by institutional investors. 2.7% of Sykes Enterprises shares are owned by company insiders. Comparatively, 3.5% of RPX shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Sykes Enterprises and RPX’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sykes Enterprises||$1.59 billion||0.79||$32.21 million||$0.77||37.71|
|RPX||$330.46 million||1.59||-$79.14 million||($1.60)||-6.60|
Sykes Enterprises has higher revenue and earnings than RPX. RPX is trading at a lower price-to-earnings ratio than Sykes Enterprises, indicating that it is currently the more affordable of the two stocks.
RPX pays an annual dividend of $0.10 per share and has a dividend yield of 0.9%. Sykes Enterprises does not pay a dividend. RPX pays out -6.3% of its earnings in the form of a dividend.
Risk & Volatility
Sykes Enterprises has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, RPX has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.
Sykes Enterprises beats RPX on 8 of the 15 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.
RPX Corporation is engaged in providing an alternative to litigation through its patent risk management services. The Company helps companies reduce patent litigation risk and corporate legal expense through two primary service offerings: patent risk management services and discovery services. It operates through two segments: patent risk management and discovery services. Its patent risk management segment generates its revenues from membership subscriptions, premiums earned from insurance policies, and management fees for marketing, underwriting, and claim management. Its discovery services segment generates its revenues from fees generated for data collection, hosting and processing, project management, and document review services. The Company serves clients in a range of industries, including consumer electronics, personal computers, e-commerce, financial services, software, media content and distribution, mobile communications and handsets, networking and semiconductors.
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