TTEC (NASDAQ:TTEC) and Kelly Services (NASDAQ:KELYB) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Earnings and Valuation
This table compares TTEC and Kelly Services’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TTEC | $1.48 billion | 1.09 | $7.25 million | N/A | N/A |
| Kelly Services | $5.51 billion | 0.16 | $22.90 million | N/A | N/A |
Kelly Services has higher revenue and earnings than TTEC.
Risk and Volatility
TTEC has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Kelly Services has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.
Insider & Institutional Ownership
25.7% of TTEC shares are held by institutional investors. Comparatively, 0.0% of Kelly Services shares are held by institutional investors. 69.6% of TTEC shares are held by insiders. Comparatively, 93.1% of Kelly Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares TTEC and Kelly Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TTEC | -1.71% | 20.76% | 6.86% |
| Kelly Services | 0.42% | 7.64% | 3.79% |
Dividends
TTEC pays an annual dividend of $0.56 per share and has a dividend yield of 1.6%. Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.3%. TTEC has increased its dividend for 3 consecutive years. TTEC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a summary of recent ratings for TTEC and Kelly Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TTEC | 0 | 0 | 0 | 0 | N/A |
| Kelly Services | 0 | 0 | 0 | 0 | N/A |
Summary
TTEC beats Kelly Services on 8 of the 12 factors compared between the two stocks.
About TTEC
TTEC Holdings, Inc. designs, builds, and operates omni-channel customer experiences. It operates through four segments: Customer Management Services (CMS), Customer Growth Services (CGS), Customer Technology Services (CTS), and Customer Strategy Services (CSS). The CMS segment offers customer experience delivery solutions, which integrate technology with customer experience professionals to optimize the customer experience across various channels and stages of the customer lifecycle from an onshore, offshore, or work-from-home environments. The CGS segment provides technology-enabled sales and marketing solutions, including sales advisory, search engine optimization, digital demand generation, and lead qualification, as well as acquisition sales, growth, and retention services. The CTS segment offers system design consulting, customer experience technology product, and implementation and integration consulting services, as well as manages clients’ cloud and on-premise solutions. The CSS segment provides professional services in customer experience strategy and operations, insights, system and operational process optimization, and culture development and knowledge management. TTEC Holdings, Inc. also offers digital trust and safety, and health services. The company serves clients in the automotive, communication, financial services, government, healthcare, logistics, media and entertainment, retail, technology, transportation, and travel industries. It has operations in the United States, Australia, Belgium, Brazil, Bulgaria, Canada, China, Costa Rica, Germany, Hong Kong, India, Ireland, Lebanon, Macedonia, Mexico, New Zealand, the Philippines, Poland, Singapore, South Africa, Thailand, Turkey, the United Arab Emirates, 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 Englewood, Colorado.
About Kelly Services
Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries worldwide. The company operates through three segments: Americas Staffing, Global Talent Solutions, and International Staffing. It provides trained employees for data entry, clerical, and administrative support roles across various industries; schools with instructional and non-instructional employees; support staff for seminars, sales, and trade shows; assemblers, quality control inspectors, and technicians for electronic assembly; maintenance workers, material handlers, and assemblers for light industrial works; scientists, and scientific and clinical research workforce solutions; engineering professionals across various disciplines, including aeronautical, chemical, civil/structural, electrical/instrumentation, environmental, industrial, mechanical, petroleum, pharmaceutical, quality, and telecommunications. The company also provides temporary staffing and direct-hire placement services across various disciplines, such as corporate finance departments, accounting firms, and financial institutions with various levels of financial professionals, as well as places creative talent in the spectrum of creative services positions. In addition, it provides chefs, porters, and hospitality representatives; and manual workers and semi-skilled professionals in various trade, non-trade, and operational positions. Further, the company provides centrally delivered staffing for large accounts; contingent workforce outsourcing, recruitment process outsourcing, business process outsourcing, and payroll process outsourcing services; contact center staffing solutions; and executive placement, career transition/outplacement, and talent advisory services. Kelly Services, Inc. was founded in 1946 and is headquartered in Troy, Michigan.
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