Critical Contrast: TaskUs (NASDAQ:TASK) versus Global Blue Group (NYSE:GB)

Global Blue Group (NYSE:GB) and TaskUs (NASDAQ:TASK) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares Global Blue Group and TaskUs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Blue Group	3.29%	61.46%	2.32%
TaskUs	5.23%	16.61%	8.39%

Earnings & Valuation

This table compares Global Blue Group and TaskUs’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Blue Group	$458.29 million	1.99	$15.12 million	$0.07	68.57
TaskUs	$924.36 million	1.61	$45.69 million	$0.51	33.10

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

Analyst Ratings

This is a summary of recent ratings for Global Blue Group and TaskUs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Blue Group	0	0	1	0	3.00
TaskUs	1	5	2	0	2.13

Global Blue Group presently has a consensus price target of $8.00, suggesting a potential upside of 66.67%. TaskUs has a consensus price target of $14.88, suggesting a potential downside of 11.88%. Given Global Blue Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Global Blue Group is more favorable than TaskUs.

Institutional and Insider Ownership

89.7% of Global Blue Group shares are held by institutional investors. Comparatively, 44.6% of TaskUs shares are held by institutional investors. 5.2% of Global Blue Group shares are held by insiders. Comparatively, 29.3% of TaskUs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Global Blue Group has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, TaskUs has a beta of 2.33, meaning that its stock price is 133% more volatile than the S&P 500.

Summary

TaskUs beats Global Blue Group on 8 of the 14 factors compared between the two stocks.

About Global Blue Group

Global Blue Group Holding AG, together with its subsidiaries, provides technology-enabled transaction processing services for merchants, banks, acquirers, governments, and travelers in Europe, the Asia Pacific, and internationally. The company operates in three segments: Tax Free Shopping Technology Solutions (TFSS), Added-Value Payment Solutions (AVPS), and Retail Tech Solutions (RTS). It offers TFSS, a value added tax (VAT) refund service that allows eligible shoppers to reclaim VAT on goods purchased outside of their home country; and intelligence and marketing services. The company also provides AVPS, a service which enables customers to pay in their choice of preferred currency, home or destination, and at the point of sale (POS) when shopping outside of their home country under the Dynamic Currency Choice and Currency Select brands. In addition, it offers currency conversion services for POS, e-commerce return solutions, dynamic currency conversion (DCC) services, and DCC services at ATMs, as well as multi-currency processing services for online retailers. Further, the company provides ZigZag, a technology platform that fully digitalizes the eCommerce returns experience and enhances the process for both retailers and consumers; Yocuda that enables retailers to send digital receipts to their customers; and ShipUp, a post-purchase engagement solution for online purchases enabling brands to deliver seamless, proactive, and branded post-purchase communication. Global Blue Group Holding AG was founded in 1980 and is headquartered in Wangen-Brüttisellen, Switzerland.

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.