Mattersight (MATR) versus Convergys (CVG) Critical Contrast
Mattersight (NASDAQ:MATR) and Convergys (NYSE:CVG) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.
Convergys pays an annual dividend of $0.44 per share and has a dividend yield of 1.8%. Mattersight does not pay a dividend. Convergys pays out 23.5% of its earnings in the form of a dividend. Convergys has raised its dividend for 5 consecutive years.
This is a summary of recent ratings for Mattersight and Convergys, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mattersight presently has a consensus target price of $3.04, suggesting a potential upside of 13.25%. Convergys has a consensus target price of $27.25, suggesting a potential upside of 11.63%. Given Mattersight’s higher possible upside, analysts plainly believe Mattersight is more favorable than Convergys.
Volatility and Risk
Mattersight has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Convergys has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.
Insider & Institutional Ownership
37.6% of Mattersight shares are owned by institutional investors. 28.3% of Mattersight shares are owned by company insiders. Comparatively, 1.7% of Convergys shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Mattersight and Convergys’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Mattersight and Convergys’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mattersight||$46.51 million||1.91||-$16.32 million||N/A||N/A|
|Convergys||$2.79 billion||0.80||$121.40 million||$1.87||13.05|
Convergys has higher revenue and earnings than Mattersight.
Convergys beats Mattersight on 8 of the 13 factors compared between the two stocks.
Mattersight Corporation provides behavioral analytics services in the United States. The company provides predictive behavioral routing and workstyle, performance management, quality assurance, predictive analytics, and marketing managed services. It serves companies in the healthcare, insurance, financial service, technology, telecommunication, cable, utility, education, hospitality, and government industries. The company was formerly known as eLoyalty Corporation and changed its name to Mattersight Corporation in May 2011. Mattersight Corporation was founded in 1994 and is headquartered in Chicago, Illinois.
Convergys Corporation provides customer management services to communications and media, technology, financial services, retail, healthcare, government, travel and hospitality, and other vertical markets worldwide. The company offers solutions across the customer lifecycle, including sales, customer service, technical support, customer retention, and collection, as well as security, compliance, and fraud solutions; and solutions in contact center technology comprising omni-channel interaction, cross-channel integration framework, real-time decisioning engine, robotic process automation, intelligent notification, campaign management, personalized care, personalized selling, agent productivity, and retention solutions. It also provides analytics and consulting, and software solutions, such as enterprise feedback management, integrated customer experience analytics, post-contact surveys, relational loyalty research, customer segmentation and profiling, call elimination analysis, analysis of customer effort, digital channel optimization, and integrated contact center analytics solutions, as well as voice of customer software. The company operates through 140 contact centers. Convergys Corporation was founded in 1998 and is headquartered in Cincinnati, Ohio.
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