Financial Review: Borqs Technologies (BRQS) & Sykes Enterprises (SYKE)

Borqs Technologies (NASDAQ:BRQS) and Sykes Enterprises (NASDAQ:SYKE) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Volatility and Risk

Borqs Technologies has a beta of -0.89, indicating that its stock price is 189% less volatile than the S&P 500. Comparatively, Sykes Enterprises has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.



Insider and Institutional Ownership

24.4% of Borqs Technologies shares are owned by institutional investors. Comparatively, 87.3% of Sykes Enterprises shares are owned by institutional investors. 2.9% of Sykes Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Borqs Technologies and Sykes Enterprises, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Borqs Technologies 0 1 0 0 2.00
Sykes Enterprises 0 1 1 0 2.50

Sykes Enterprises has a consensus target price of $36.00, suggesting a potential upside of 19.17%. Given Sykes Enterprises’ stronger consensus rating and higher probable upside, analysts plainly believe Sykes Enterprises is more favorable than Borqs Technologies.

Earnings & Valuation

This table compares Borqs Technologies and Sykes Enterprises’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Borqs Technologies $154.31 million 0.81 -$12.56 million ($1.52) -2.63
Sykes Enterprises $1.59 billion 0.82 $32.21 million $2.00 15.11

Sykes Enterprises has higher revenue and earnings than Borqs Technologies. Borqs Technologies is trading at a lower price-to-earnings ratio than Sykes Enterprises, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Borqs Technologies and Sykes Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Borqs Technologies -3.93% -16.57% -6.12%
Sykes Enterprises 1.39% 10.28% 6.68%

Summary

Sykes Enterprises beats Borqs Technologies on 14 of the 14 factors compared between the two stocks.

About Borqs Technologies

Borqs Technologies, Inc., through its subsidiaries, provides development services, software solutions, and products for Android-based smart connected devices in China, India, the United States, and internationally. It operates through two segments, Mobile Virtual Network Operator Services and Connected Solutions. The company develops wireless smart connected devices and cloud solutions; and provides a range of 2G/3G/4G voice and data services for general consumer usage and Internet-of-things devices, as well as telecom services, such as voice conferencing. It also offers commercial grade Android platform software and service solutions for mobile chipset manufacturers, mobile device OEMs, and mobile operators, as well as mobile connected device solutions for use in enterprise and consumer applications. In addition, it sells hardware products. Borqs Technologies, Inc. is headquartered in Beijing, China.

About Sykes Enterprises

Sykes Enterprises, Incorporated, together with its subsidiaries, provides multichannel demand generation and global customer engagement services. Its customer care services include handling billing inquiries and claims, activating customer accounts, resolving complaints, cross-selling/up-selling, and prequalifying and warranty management, as well as providing health information and dispatching roadside assistance. The company's technical support services comprise support around complex networks, hardware and software, communications equipment, Internet access technology, and Internet portal usage. It also provides customer acquisition services, which focuses around digital marketing, demand generation, and in-bound sales conversion, as well as inbound and outbound up-selling its clients' products and services. It also provides technical staffing services to outsourced corporate help desk services; and fulfillment services, such as order and payment processing, inventory control, product delivery, and product returns handling. The company offers its services through phone, e-mail, social media, text messaging, chat, and digital self-service support. Sykes Enterprises, Incorporated provides its services to corporations, medium-sized businesses, and public institutions in the communications, financial services, technology, transportation and leisure, healthcare, retail, and other industries. It operates in the United States, Canada, Latin America, Australia, the Asia Pacific Rim, Europe, the Middle East, and Africa. Sykes Enterprises, Incorporated was founded in 1977 and is headquartered in Tampa, Florida.

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