Head to Head Review: Sykes Enterprises (SYKE) versus Asure Software (ASUR)

Asure Software (NASDAQ:ASUR) and Sykes Enterprises (NASDAQ:SYKE) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for Asure Software and Sykes Enterprises, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Asure Software 0 1 6 0 2.86
Sykes Enterprises 0 2 0 0 2.00

Asure Software currently has a consensus price target of $14.43, indicating a potential upside of 123.70%. Sykes Enterprises has a consensus price target of $31.00, indicating a potential upside of 11.59%. Given Asure Software’s stronger consensus rating and higher possible upside, analysts clearly believe Asure Software is more favorable than Sykes Enterprises.

Insider & Institutional Ownership

56.1% of Asure Software shares are held by institutional investors. Comparatively, 90.6% of Sykes Enterprises shares are held by institutional investors. 18.2% of Asure Software shares are held by insiders. Comparatively, 2.9% of Sykes Enterprises shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Asure Software has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Sykes Enterprises has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Valuation & Earnings

This table compares Asure Software 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
Asure Software $88.95 million 1.09 -$7.55 million $0.43 15.00
Sykes Enterprises $1.63 billion 0.73 $48.93 million $2.02 13.75

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

Profitability

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

Net Margins Return on Equity Return on Assets
Asure Software -8.49% 6.82% 2.03%
Sykes Enterprises 3.01% 10.52% 7.41%

Asure Software Company Profile

Asure Software, Inc. provides cloud-based human capital management and workspace management solutions worldwide. Its product line includes AsureSpace workspace management solutions that enable organizations to optimize their real estate investment, and create a digital workspace that empowers mobile and virtual employees; and AsureForce time and labor management solutions to help organizations optimize their workforce, as well as control labor administration costs and activities. The company also offers AsureHCM, an integrated cloud-based solution that provides human resource (HR) management and payroll to benefits, talent acquisition, and performance management services; Evolution HCM, an integrated payroll, HR, and tax management suite; and AsureConsulting, which offers a suite of services to assist organizations through the entire employee lifecycle. In addition, it provides SmartView occupancy sensors and analytics platform that offers insights, which allow companies to make strategic decisions about real estate investments and workplace design; and SmartMove, a move management software that help companies design floorplans and track permanent seat assignments, as well as manage assets, such as telephones, laptops, desks, chairs, and other items assigned to an employee. Further, the company provides AsureSpace Resource Scheduler, a solution for the digital workplace that features conference room and desk reservations, service management, interactive floorplans, visitor management, calendar and Web conference integrations, and reporting; and NowSpace, a mobile app for Apple and Android devices that enables mobile workers to find and reserve desks and conference rooms from their smart phones. It serves clients ranging from Fortune 500 to small and mid-sized businesses directly, as well as through reseller and referral partners. Asure Software, Inc. was founded in 1985 and is headquartered in Austin, Texas.

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, demand generation, and in-bound sales conversion, as well as inbound and outbound up-selling its clients' products and services. It also provides technical staffing services to outsourced corporate help desk services; and fulfillment services, such as order and payment processing, inventory control, product delivery, and product returns handling. The company offers its services through phone, e-mail, 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 communications, financial services, technology, transportation and leisure, healthcare, retail, 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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