Quality Systems (NASDAQ: QSII) and TeleTech (NASDAQ:TTEC) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
TeleTech pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. Quality Systems does not pay a dividend. TeleTech pays out 47.6% of its earnings in the form of a dividend.
This table compares Quality Systems and TeleTech’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Quality Systems||$509.62 million||1.73||$18.24 million||$0.43||32.16|
|TeleTech||$1.28 billion||1.45||$33.67 million||$1.05||38.38|
TeleTech has higher revenue and earnings than Quality Systems. Quality Systems is trading at a lower price-to-earnings ratio than TeleTech, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Quality Systems has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, TeleTech has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Quality Systems and TeleTech, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Quality Systems currently has a consensus target price of $14.81, suggesting a potential upside of 7.10%. TeleTech has a consensus target price of $43.00, suggesting a potential upside of 6.70%. Given Quality Systems’ higher possible upside, research analysts clearly believe Quality Systems is more favorable than TeleTech.
This table compares Quality Systems and TeleTech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
72.2% of Quality Systems shares are held by institutional investors. Comparatively, 24.8% of TeleTech shares are held by institutional investors. 17.9% of Quality Systems shares are held by company insiders. Comparatively, 70.0% of TeleTech shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
TeleTech beats Quality Systems on 9 of the 16 factors compared between the two stocks.
Quality Systems Company Profile
Quality Systems, Inc. (QSI) primarily, through its NextGen Healthcare subsidiary, provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices. The Company operates through three segments: the NextGen Division, the RCM Services Division and the QSI Dental Division. It also provides implementation, training, support and maintenance for software and complementary services, such as revenue cycle management (RCM) and electronic data interchange (EDI). The Company’s clients include single and small practice physicians, networks of practices, such as physician hospital organizations (PHOs), management service organizations (MSOs), accountable care organizations (ACOs), ambulatory care centers, community health centers, and medical and dental schools.
TeleTech Company Profile
TeleTech Holdings, Inc. (TeleTech) is a customer service provider that delivers consulting, technology, growth and customer care solutions on a global scale. The Company operates through four segments: Customer Management Services (CMS), Customer Growth Services (CGS), Customer Technology Services (CTS) and Customer Strategy Services (CSS). The CMS segment designs and manages clients’ front-to-back office processes to deliver just-in-time, personalized, multi-channel interactions. The CGS segment offers integrated sales and marketing solutions to help its clients in the business-to-consumer or business-to-business markets. The CTS segment includes operational and system design consulting, customer experience technology product, implementation and integration consulting services, and management of clients cloud and on premise solutions. The CSS segment provides professional services in customer experience strategy, and system and operational process optimization.
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