Financial Contrast: OneConnect Financial Technology (NYSE:OCFT) and TeleTech (NASDAQ:TTEC)

TeleTech (NASDAQ:TTEC) and OneConnect Financial Technology (NYSE:OCFT) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Insider & Institutional Ownership

38.0% of TeleTech shares are held by institutional investors. Comparatively, 4.1% of OneConnect Financial Technology shares are held by institutional investors. 59.2% of TeleTech 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.

Earnings and Valuation

This table compares TeleTech and OneConnect Financial Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeleTech	$2.21 billion	0.08	-$320.96 million	($0.54)	-6.54
OneConnect Financial Technology	$312.73 million	N/A	-$63.94 million	($2.59)	-2.89

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

Volatility and Risk

TeleTech has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, OneConnect Financial Technology has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for TeleTech and OneConnect Financial Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeleTech	1	3	0	0	1.75
OneConnect Financial Technology	1	1	0	0	1.50

TeleTech currently has a consensus price target of $3.50, indicating a potential downside of 0.85%. OneConnect Financial Technology has a consensus price target of $7.98, indicating a potential upside of 6.54%. Given OneConnect Financial Technology’s higher possible upside, analysts clearly believe OneConnect Financial Technology is more favorable than TeleTech.

Profitability

This table compares TeleTech and OneConnect Financial Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeleTech	-1.20%	8.23%	1.34%
OneConnect Financial Technology	-41.54%	-8.58%	-5.53%

Summary

TeleTech beats OneConnect Financial Technology on 9 of the 12 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 OneConnect Financial Technology

OneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People's Republic of China. It operates in Technology Solutions and Virtual Bank Business segments. The company offers Gamma Platform, which offers a toolbox of separate solution modules that provide technology infrastructure and underlying technologies; marketing management platform, developed from AI Banker App, provides banks relationship managers with technology that supports in managing their acquisition and relationships with retail customers; and wealth management platform that provides banks with tools to enhance the efficiency of their wealth management business. It also provides intelligent product development platform for banks, which allows to shorten product development cycle, enhance speed to market, and facilitate product portfolio management; Regtech, an end-to-end regulatory solution for financial regulatory authorities; asset-liability management solution provides analytics to enhance financial institutions asset liquidity performance; and digital insurance solutions for digitalizing the insurance process, marketing, customer management, and claim processing under intelligent property and casualty insurance and life insurance solution. In addition, the company provides Gamma Voice Solution, an AI customer service for support customer service functions; and Gamma FinCloud, which allows entities with expensive-to-replace legacy systems to directly migrate to the cloud to securely maintain their data. Further, it offers information transmission, information technology advisory, E-commerce security certificate administration, technology promotion and computer application, software and technology, insurance survey and loss adjustment, and asset management and consulting services. The company was founded in 2015 and is headquartered in Shenzhen, the People's Republic of China.