Analyzing TELUS International (Cda) (NYSE:TIXT) and Yext (NYSE:YEXT)

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

Risk and Volatility

TELUS International (Cda) has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Yext has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for TELUS International (Cda) and Yext, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS International (Cda)	2	13	1	0	1.94
Yext	0	2	2	0	2.50

TELUS International (Cda) currently has a consensus target price of $7.55, indicating a potential upside of 105.82%. Yext has a consensus target price of $7.31, indicating a potential upside of 12.50%. Given TELUS International (Cda)’s higher possible upside, equities research analysts plainly believe TELUS International (Cda) is more favorable than Yext.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TELUS International (Cda)	2.70%	11.66%	4.96%
Yext	-1.68%	-3.35%	-1.07%

Institutional and Insider Ownership

59.6% of TELUS International (Cda) shares are owned by institutional investors. Comparatively, 71.0% of Yext shares are owned by institutional investors. 4.8% of TELUS International (Cda) shares are owned by insiders. Comparatively, 8.4% of Yext shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares TELUS International (Cda) and Yext”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS International (Cda)	$2.71 billion	0.14	$54.00 million	$0.15	24.47
Yext	$404.32 million	2.06	-$2.63 million	($0.05)	-130.00

TELUS International (Cda) has higher revenue and earnings than Yext. Yext 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.

Summary

TELUS International (Cda) beats Yext on 8 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 Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company's platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.