Reviewing Sykes Enterprises (SYKE) and RPX (RPXC)

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.

Analyst Ratings

How to Become a New Pot Stock Millionaire

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
Sykes Enterprises 0 2 1 0 2.33
RPX 1 1 1 0 2.00

Sykes Enterprises presently has a consensus price target of $31.50, indicating a potential upside of 8.47%. RPX has a consensus price target of $14.33, indicating a potential upside of 35.73%. Given RPX’s higher probable upside, analysts clearly believe RPX is more favorable than Sykes Enterprises.

Profitability

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
Sykes Enterprises 2.03% 10.80% 6.53%
RPX -23.95% 6.17% 4.24%

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.

Dividends

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.

Summary

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.

About RPX

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.

Receive News & Ratings for Sykes Enterprises Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sykes Enterprises and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Valero Energy Partners  Expected to Announce Quarterly Sales of $128.08 Million
Valero Energy Partners Expected to Announce Quarterly Sales of $128.08 Million
Analysts Expect Triumph Group  Will Post Earnings of $1.03 Per Share
Analysts Expect Triumph Group Will Post Earnings of $1.03 Per Share
Salesforce.com  Receives Daily Coverage Optimism Rating of 0.15
Salesforce.com Receives Daily Coverage Optimism Rating of 0.15
Costco Wholesale  Getting Positive Media Coverage, Accern Reports
Costco Wholesale Getting Positive Media Coverage, Accern Reports
Goldman Sachs  Receiving Somewhat Favorable Media Coverage, Report Shows
Goldman Sachs Receiving Somewhat Favorable Media Coverage, Report Shows
HDFC Bank  Earning Somewhat Favorable Media Coverage, Analysis Finds
HDFC Bank Earning Somewhat Favorable Media Coverage, Analysis Finds


© 2006-2018 Ticker Report. Google+.