Analyzing TELUS International (Cda) (NYSE:TIXT) & DATATRAK International (OTCMKTS:DTRK)

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

Volatility & Risk

TELUS International (Cda) has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, DATATRAK International has a beta of 3.15, suggesting that its stock price is 215% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TELUS International (Cda)	1.17%	9.67%	4.17%
DATATRAK International	N/A	N/A	N/A

Insider & Institutional Ownership

59.6% of TELUS International (Cda) shares are owned by institutional investors. 4.8% of TELUS International (Cda) shares are owned by insiders. Comparatively, 8.0% of DATATRAK International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS International (Cda)	$2.71 billion	0.36	$54.00 million	($0.05)	-70.94
DATATRAK International	$6.18 million	0.19	$2.66 million	N/A	N/A

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for TELUS International (Cda) and DATATRAK International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS International (Cda)	2	13	2	1	2.11
DATATRAK International	0	0	0	0	0.00

TELUS International (Cda) presently has a consensus target price of $7.20, indicating a potential upside of 102.89%. Given TELUS International (Cda)’s stronger consensus rating and higher probable upside, analysts clearly believe TELUS International (Cda) is more favorable than DATATRAK International.

Summary

TELUS International (Cda) beats DATATRAK International on 11 of the 13 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 DATATRAK International

DATATRAK International, Inc., a technology and services company, provides unified clinical solutions and related services for the clinical trials industry. The company offers DATATRAK ONE Unified Experience, a clinical enterprise solution that allows clinical users and service providers to design, deliver, and manage clinical trials. Its products include UX CTMS 360 for planning and managing trials; UX Trial to streamline design-to-deployment process using a tool; UX EDC & Medical Coding for capturing and delivering data; UX Randomization and Trial Supply Management to randomize patients and automate supply; UX Patient Data Capture; UX Safety; and UX Training to train users and track certificates. The company also provides DATATRAK Clinical Consulting Services, such as training, support, learning center, Software as a Service hosting, standards, and trial design services. It serves contract research organizations, pharma and biotech companies, and clinical trial device companies. DATATRAK International, Inc. was founded in 1991 and is headquartered in Mayfield Heights, Ohio.