TeleTech (NASDAQ:TTEC) versus Classover (NASDAQ:KIDZ) Financial Review

Classover (NASDAQ:KIDZ) and TeleTech (NASDAQ:TTEC) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Classover	N/A	N/A	$5.27 million	($0.31)	-0.44
TeleTech	$2.21 billion	0.05	-$320.96 million	($0.38)	-6.00

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

Institutional and Insider Ownership

74.7% of Classover shares are held by institutional investors. Comparatively, 38.0% of TeleTech shares are held by institutional investors. 23.0% of Classover shares are held by company insiders. Comparatively, 59.2% of TeleTech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Classover	N/A	N/A	N/A
TeleTech	-0.84%	8.95%	1.47%

Volatility & Risk

Classover has a beta of -0.37, indicating that its share price is 137% less volatile than the S&P 500. Comparatively, TeleTech has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Classover and TeleTech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Classover	1	0	0	0	1.00
TeleTech	1	4	0	0	1.80

TeleTech has a consensus target price of $3.50, indicating a potential upside of 53.51%. Given TeleTech’s stronger consensus rating and higher possible upside, analysts plainly believe TeleTech is more favorable than Classover.

Summary

TeleTech beats Classover on 7 of the 12 factors compared between the two stocks.

About Classover

Classover is an online enrichment program in Manhattan, New York that offers over 20 courses taught by certified instructors. It caters to children aged 4 to 17, providing personalized attention and a supportive learning environment. Classover is recognized worldwide by over 20,000 parents and children in more than 34 countries. Classover’s proprietary course platform app provides exclusive benefits to students, including access to class schedules, remaining class credits, and class history. As an official test center for the Math Kangaroo Competition and other high-value competition channels, Classover is certified to provide high-quality teaching services to help students improve their academic performance. The school’s WASC certification is a testament to its teaching quality, meeting high standards in student satisfaction, teacher qualifications, classroom environment, and course content quality. Classover limits class size to six students to ensure personalized attention, delivering over 330,000 hours of online classes with a course renewal rate exceeding 90%. The platform has helped students win competition awards, making it a recognized “The Best Parenting Tool” in the parent community.

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.