TELUS International (Cda) (NYSE:TIXT) versus Brightcove (NASDAQ:BCOV) Head-To-Head Review

TELUS International (Cda) (NYSE:TIXT) and Brightcove (NASDAQ:BCOV) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Analyst Ratings

This is a summary of recent ratings for TELUS International (Cda) and Brightcove, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS International (Cda)	0	9	5	0	2.36
Brightcove	0	1	1	0	2.50

TELUS International (Cda) currently has a consensus price target of $12.83, indicating a potential upside of 122.03%. Brightcove has a consensus price target of $4.00, indicating a potential upside of 68.78%. Given TELUS International (Cda)’s higher probable upside, research analysts clearly believe TELUS International (Cda) is more favorable than Brightcove.

Risk & Volatility

TELUS International (Cda) has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Brightcove has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Valuation and Earnings

This table compares TELUS International (Cda) and Brightcove’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS International (Cda)	$2.68 billion	0.23	$54.00 million	$0.15	38.53
Brightcove	$201.19 million	0.53	-$22.89 million	($0.22)	-10.77

TELUS International (Cda) has higher revenue and earnings than Brightcove. Brightcove is trading at a lower price-to-earnings ratio than TELUS International (Cda), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TELUS International (Cda) and Brightcove’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TELUS International (Cda)	2.54%	11.67%	4.86%
Brightcove	-4.74%	-7.87%	-3.39%

Institutional & Insider Ownership

59.5% of TELUS International (Cda) shares are held by institutional investors. Comparatively, 80.1% of Brightcove shares are held by institutional investors. 4.8% of TELUS International (Cda) shares are held by company insiders. Comparatively, 3.7% of Brightcove shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

TELUS International (Cda) beats Brightcove on 11 of the 14 factors compared between the two stocks.

About TELUS International (Cda)

TELUS International (Cda) Inc. design, builds, and delivers digital solutions for customer experience (CX) in the Asia-Pacific, the Central America, Europe, Africa, North America, and internationally. The company provides digital experience solutions, such as AI and bots, omnichannel CX, enterprise mobility solutions, cloud contact center, big data analytics, platform transformation, and UX/UI design; and customer experience solutions, including work anywhere/work from home, contact center outsourcing, technical support, sales growth and customer retention, healthcare/patient experience, and debt collection. It also offers IT lifecycle services comprising cloud platform solutions, managed IT services, application development and management, quality assurance and testing, system operations, IT service desk, internet of things, engineering solutions, and enterprise platform services; advisory services consists of digital strategy, CX process consulting, data and customer analytics, workforce management, learning excellence solutions, and business and process transformation; back office and automation solutions, such as robotic process automation, talent acquisition, finance and accounting, and supply chain management; and trust, safety, and security services, including content moderation and social media community management, and fraud prevention and detection. In addition, the company provides AI data solutions comprising data collection and creation, data annotation, data validation and relevance, and linguistic annotation for video, audio, text, image, and geographical data, as well as 3D sensor fusion. It serves technology and gaming, communications and media, ecommerce, financial services and financial technology, healthcare, travel and hospitality, and automotive industries. The company was founded in 2005 and is headquartered in Vancouver, Canada. TELUS International (Cda) Inc. operates as a subsidiary of TELUS Communications Inc.

About Brightcove

Brightcove Inc. provides cloud-based streaming services the Americas, Europe, the Asia Pacific, Japan, India, and the Middle East. It offers Video Cloud, an online video streaming platform that enables its customers to publish, deliver, and distribute high-quality video to internet-connected devices. The company's solutions and products comprise Brightcove Marketing Studio, a video streaming solution; Brightcove Communications Studio for marketers and corporate communications professionals; Brightcove Media Studio, a solution for over-the-top (OTT) video services, media publishers, and leading broadcasters to monetize their media, live stream at scale, and nurture their audience lifecycle; Brightcove Audience Insights, a customer data platform for video streaming businesses; Zencoder, a cloud-based video encoding service; and Brightcove Beacon, a platform that enables its customers to launch premium OTT video streaming experiences, as well as Brightcove Marketplace. It also provides ad monetization; professional; customer success, support, and documentation; online and onsite training; and video.js and developer solutions. The company serves media companies, broadcasters, digital publishers, sports and entertainment companies, fashion and hospitality brands, faith-based institutions, retail and e-commerce businesses, and technology organizations, as well as government agencies, educational institutions, and non-profit organizations. Brightcove Inc. was incorporated in 2004 and is headquartered in Boston, Massachusetts.