StarTek (SRT) vs. Its Competitors Critical Analysis

StarTek (NYSE: SRT) is one of 23 publicly-traded companies in the “Help supply services” industry, but how does it weigh in compared to its rivals? We will compare StarTek to related companies based on the strength of its analyst recommendations, earnings, risk, institutional ownership, profitability, dividends and valuation.

Earnings and Valuation

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This table compares StarTek and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
StarTek $292.60 million -$1.27 million -117.63
StarTek Competitors $4.22 billion $125.65 million 12.00

StarTek’s rivals have higher revenue and earnings than StarTek. StarTek is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

StarTek has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, StarTek’s rivals have a beta of 1.18, meaning that their average share price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for StarTek and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StarTek 0 2 1 0 2.33
StarTek Competitors 69 339 562 11 2.52

StarTek currently has a consensus target price of $12.67, suggesting a potential upside of 34.61%. As a group, “Help supply services” companies have a potential upside of 2.88%. Given StarTek’s higher probable upside, equities research analysts clearly believe StarTek is more favorable than its rivals.

Insider and Institutional Ownership

42.1% of StarTek shares are held by institutional investors. Comparatively, 62.2% of shares of all “Help supply services” companies are held by institutional investors. 17.8% of StarTek shares are held by company insiders. Comparatively, 19.2% of shares of all “Help supply services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares StarTek and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
StarTek -0.44% -2.68% -1.30%
StarTek Competitors 1.78% -1.82% 5.49%

Summary

StarTek rivals beat StarTek on 12 of the 13 factors compared.

About StarTek

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.

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