StarTek (SRT) vs. The Adecco Group (AHEXY) Head-To-Head Comparison
StarTek (NYSE: SRT) and The Adecco Group (OTCMKTS:AHEXY) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.
Insider & Institutional Ownership
42.1% of StarTek shares are owned by institutional investors. Comparatively, 0.2% of The Adecco Group shares are owned by institutional investors. 17.8% of StarTek shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
The Adecco Group pays an annual dividend of $0.44 per share and has a dividend yield of 1.3%. StarTek does not pay a dividend. The Adecco Group pays out 16.7% of its earnings in the form of a dividend.
Risk and Volatility
StarTek has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, The Adecco Group has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for StarTek and The Adecco Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Adecco Group||1||0||0||0||1.00|
StarTek currently has a consensus price target of $12.67, indicating a potential upside of 35.76%. Given StarTek’s stronger consensus rating and higher possible upside, analysts clearly believe StarTek is more favorable than The Adecco Group.
This table compares StarTek and The Adecco Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Adecco Group||3.34%||22.19%||8.00%|
Earnings & Valuation
This table compares StarTek and The Adecco Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|StarTek||$292.60 million||0.51||-$1.27 million||($0.08)||-116.63|
|The Adecco Group||$26.73 billion||0.45||$890.67 million||$2.63||13.27|
The Adecco Group has higher revenue and earnings than StarTek. StarTek is trading at a lower price-to-earnings ratio than The Adecco Group, indicating that it is currently the more affordable of the two stocks.
The Adecco Group beats StarTek on 9 of the 16 factors compared between the two stocks.
StarTek, Inc. provides business process outsourcing services in the United States, Canada, Honduras, Jamaica, and the Philippines. It operates in three segments: Domestic, Nearshore, and Offshore. The company's service offerings include customer care, sales support, inbound sales, complex order processing, accounts receivable management, technical and product support, up-sell and cross-sell opportunities, customer intelligence analytics, and other industry-specific processes. It offers technical and product support services through telephone, e-mail, chat, facsimile, and Internet; and sales support services comprising lead generation, direct sales, account management and retention programs, and marketing analysis and modeling. The company's provisioning and order processing services comprise full life cycle order management and technical sales support for high-end telecommunications services, such as wire-line, wireless, data, and customer premise equipment; order fallout from its clients' automated systems, billing review, revenue recovery, and quality assurance; direct-to-consumer services, such as provisioning, order processing, and transfer of accounts between client service providers. Its receivables management services consist of first and third party collections services for clients in the telecommunication, cable and media, and healthcare industries; healthcare services include customer care, sales support, accounts receivable management, remote patient care, and medical triage to providers, payers, pharmaceutical, and medical devices; and industry-specific processes comprise training curriculum development, workforce management, customer analytics, quality monitoring services, and dispositions. The company was founded in 1987 and is headquartered in Greenwood Village, Colorado.
About The Adecco Group
Adecco Group AG, together with its subsidiaries, provides workforce solutions to businesses and organizations worldwide. The company provides temporary staffing, permanent placement, and outsourcing services for clerical and support personnel in the areas of office-based employment; and candidates for blue collar job profiles across various industrial sectors under the Adecco brand. It also offers professional staffing services in the information technology, and engineering and technical business lines primarily under the brand name of Modis; finance and legal business line under the Badenoch & Clark brand name; and medical and science business line. In addition, the company provides managed service provision and recruitment process outsourcing solutions under the brand name of Pontoon; career transition under the Lee Hecht Harrison brand name; and talent development services, such as leadership coaching, career development programs, assessment and feedback tools, and change management support under the Lee Hecht Harrison brand name. It operated approximately 5,100 branches in 60 countries and territories. The company was formerly known as Adecco S.A. Adecco Group AG was founded in 1957 and is headquartered in Opfikon, Switzerland.
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