SmartRent (NYSE:SMRT) & TDCX (NYSE:TDCX) Critical Comparison

SmartRent (NYSE:SMRT – Get Rating) and TDCX (NYSE:TDCX – Get Rating) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Insider and Institutional Ownership

62.3% of SmartRent shares are owned by institutional investors. Comparatively, 11.9% of TDCX shares are owned by institutional investors. 12.0% of SmartRent shares are owned by company insiders. Comparatively, 85.0% of TDCX shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares SmartRent and TDCX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SmartRent	-57.40%	-23.15%	-16.00%
TDCX	15.76%	19.79%	16.19%

Volatility and Risk

SmartRent has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, TDCX has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Valuation & Earnings

This table compares SmartRent and TDCX’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartRent	$167.82 million	2.80	-$96.32 million	($0.49)	-4.82
TDCX	$493.92 million	2.81	$78.04 million	$0.51	19.02

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

Analyst Recommendations

This is a summary of current recommendations and price targets for SmartRent and TDCX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartRent	0	1	6	0	2.86
TDCX	0	2	0	0	2.00

SmartRent currently has a consensus price target of $5.48, indicating a potential upside of 132.26%. TDCX has a consensus price target of $12.55, indicating a potential upside of 29.38%. Given SmartRent’s stronger consensus rating and higher probable upside, research analysts clearly believe SmartRent is more favorable than TDCX.

Summary

TDCX beats SmartRent on 9 of the 14 factors compared between the two stocks.

About SmartRent

(Get Rating)

SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.

About TDCX

(Get Rating)

TDCX Inc., together with its subsidiaries, provides outsource contact center services for technology and other blue-chip companies in Singapore, Malaysia, Thailand, the Philippines, Japan, China, Spain, India, Colombia, South Korea, and Romania. It offers digital customer experience solutions, including after-sales service and customer support across various industry verticals, such as travel and hospitality, digital advertising and media, fast-moving consumer goods, technology, financial services, fintech, government and non-governmental organizations, gaming, e-commerce, and education. The company also provides sales and digital marketing services that help its clients to market their products and services to their potential customers in the business-to-consumer and business-to-business markets; and content monitoring and moderation services that create a safe and secure online environment for social media platforms by providing human interaction to content moderation services. In addition, it offers workspaces to its existing clients; and human resource and administration services. The company was formerly known as TDCX Capital Pte Ltd and changed its name to TDCX Inc. in January 2021. TDCX Inc. was founded in 1995 and is headquartered in Singapore. TDCX Inc. operates as a subsidiary of Transformative Investments Pte Ltd.