Comparing Parsons (NYSE:PSN) & TeleTech (NASDAQ:TTEC)

TeleTech (NASDAQ:TTEC) and Parsons (NYSE:PSN) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Institutional & Insider Ownership

38.0% of TeleTech shares are held by institutional investors. Comparatively, 98.0% of Parsons shares are held by institutional investors. 59.4% of TeleTech shares are held by insiders. Comparatively, 1.3% of Parsons shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for TeleTech and Parsons, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeleTech	1	2	0	0	1.67
Parsons	2	3	11	0	2.56

Parsons has a consensus target price of $64.08, indicating a potential upside of 42.79%. Given Parsons’ stronger consensus rating and higher probable upside, analysts plainly believe Parsons is more favorable than TeleTech.

Valuation & Earnings

This table compares TeleTech and Parsons”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeleTech	$2.14 billion	0.03	-$192.47 million	($4.30)	-0.28
Parsons	$6.36 billion	0.75	$241.14 million	$1.45	30.95

Parsons has higher revenue and earnings than TeleTech. TeleTech is trading at a lower price-to-earnings ratio than Parsons, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TeleTech and Parsons’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeleTech	-10.23%	16.25%	1.60%
Parsons	2.50%	8.10%	3.75%

Risk and Volatility

TeleTech has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Parsons has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Summary

Parsons beats TeleTech on 11 of the 14 factors compared between the two stocks.

About TeleTech

TTEC Holdings, Inc. operates as a customer experience (CX) company that designs, builds, and operates technology-enabled customer experiences across digital and live interaction channels. It operates through two segments, TTEC Digital and TTEC Engage. The TTEC Digital segment provides CX technologies for contact center as a service, customer relationship management, and artificial intelligence (AI) and analytics; creates and implements strategic CX transformation roadmaps; sells, operates, and provides managed services for cloud platforms and premise based CX technologies; creates proprietary IP to support industry specific and custom client needs; and offers CX consulting services. The TTEC Engage segment provides digitally enabled CX operational and managed services; delivers data-driven omnichannel customer care, customer acquisition, growth and retention services, tech support, trust and safety, and back-office solutions; and offers solutions for AI operations, including data annotation and labeling. It serves clients in the healthcare, automotive, government, financial services, communication, technology, travel, logistics, media and entertainment, e-tail/retail, and transportation industries with operations in the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Germany, Greece, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Thailand, 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 Greenwood Village, Colorado.

About Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.