Altaba (NASDAQ:AABA) and Sykes Enterprises (NASDAQ:SYKE) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Profitability

This table compares Altaba and Sykes Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altaba N/A N/A N/A
Sykes Enterprises 3.08% 10.53% 7.11%

Valuation & Earnings

This table compares Altaba and Sykes Enterprises’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Altaba $5.17 billion 6.96 -$214.32 million N/A N/A
Sykes Enterprises $1.63 billion 0.72 $48.93 million $2.02 13.52

Sykes Enterprises has lower revenue, but higher earnings than Altaba.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Altaba and Sykes Enterprises, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altaba 0 1 1 0 2.50
Sykes Enterprises 0 2 0 0 2.00

Altaba currently has a consensus target price of $96.50, indicating a potential upside of 39.29%. Sykes Enterprises has a consensus target price of $31.00, indicating a potential upside of 13.51%. Given Altaba’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Altaba is more favorable than Sykes Enterprises.

Volatility & Risk

Altaba has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500. Comparatively, Sykes Enterprises has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership

78.4% of Altaba shares are held by institutional investors. Comparatively, 88.6% of Sykes Enterprises shares are held by institutional investors. 0.0% of Altaba shares are held by company insiders. Comparatively, 3.8% of Sykes Enterprises shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Altaba Company Profile

Altaba Inc. operates as a non-diversified, closed-end management investment company in the United States. Its assets consist primarily of equity investments, short-term debt investments, and cash. The company was formerly known as Yahoo! Inc. and changed its name to Altaba Inc. in June 2017. Altaba Inc. was founded in 1994 and is based in New York, New York.

Sykes Enterprises Company Profile

Sykes Enterprises, Incorporated, together with its subsidiaries, provides multichannel demand generation and global customer engagement services. Its customer care services include handling billing inquiries and claims, activating customer accounts, resolving complaints, cross-selling/up-selling, and prequalifying and warranty management, as well as providing health information and dispatching roadside assistance. The company's technical support services comprise support around complex networks, hardware and software, communications equipment, Internet access technology, and Internet portal usage. It also provides customer acquisition services, which focuses around digital marketing, multichannel demand generation, and inbound up-selling and sales conversion, as well as outbound selling of its clients' products and services. In addition, the company offers technical staffing and outsourced corporate help desk services; and fulfillment services, such as order and payment processing, inventory control, product delivery, and product returns handling, as well as consulting, implementation, hosting, and managed services that optimize its differentiated full lifecycle management services platform. The company offers its services through phone, email, social media, text messaging, chat, and digital self-service support. Sykes Enterprises, Incorporated provides its services to corporations, medium-sized businesses, and public institutions in the financial services, communications, technology, transportation and leisure, healthcare, and other industries. It operates in the United States, Canada, Latin America, Australia, the Asia Pacific Rim, Europe, the Middle East, and Africa. Sykes Enterprises, Incorporated was founded in 1977 and is headquartered in Tampa, Florida.

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