Critical Review: Fair Isaac (NYSE:FICO) vs. TaskUs (NASDAQ:TASK)

TaskUs (NASDAQ:TASK) and Fair Isaac (NYSE:FICO) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Earnings & Valuation

This table compares TaskUs and Fair Isaac”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TaskUs	$1.18 billion	0.81	$45.87 million	$1.11	9.59
Fair Isaac	$1.99 billion	16.55	$651.95 million	$27.02	51.41

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

Insider & Institutional Ownership

44.6% of TaskUs shares are owned by institutional investors. Comparatively, 85.8% of Fair Isaac shares are owned by institutional investors. 30.6% of TaskUs shares are owned by company insiders. Comparatively, 3.0% of Fair Isaac shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for TaskUs and Fair Isaac, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TaskUs	1	5	1	1	2.25
Fair Isaac	0	5	9	0	2.64

TaskUs presently has a consensus price target of $15.63, suggesting a potential upside of 46.71%. Fair Isaac has a consensus price target of $1,994.62, suggesting a potential upside of 43.59%. Given TaskUs’ higher possible upside, analysts clearly believe TaskUs is more favorable than Fair Isaac.

Volatility and Risk

TaskUs has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500. Comparatively, Fair Isaac has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Profitability

This table compares TaskUs and Fair Isaac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TaskUs	8.64%	23.10%	12.40%
Fair Isaac	31.89%	-40.98%	33.55%

Summary

Fair Isaac beats TaskUs on 10 of the 15 factors compared between the two stocks.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.

About Fair Isaac

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. It offers FICO Customer Analytics, FICO Responsible AI, FICO Advisors, FICO Business Outcome Simulator, FICO Forecaster, FICO TRIAD Customer Manager, FICO Blaze Advisor, FICO Xpress Optimization, FICO Falcon Fraud Manager, FICO Analytics Workbench, FICO Data Orchestrator, FICO DMP Streaming, FICO Decision Optimizer, and FICO Strategy Director, as well as software implementation and configuration services. The company markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.