Concentrix (NASDAQ:CNXC) and ExlService (NASDAQ:EXLS) Head-To-Head Contrast

ExlService (NASDAQ:EXLS) and Concentrix (NASDAQ:CNXC) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Risk and Volatility

ExlService has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ExlService and Concentrix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ExlService	0	1	6	0	2.86
Concentrix	1	2	3	0	2.33

ExlService presently has a consensus price target of $44.50, suggesting a potential upside of 25.95%. Concentrix has a consensus price target of $32.75, suggesting a potential upside of 21.57%. Given ExlService’s stronger consensus rating and higher probable upside, equities analysts clearly believe ExlService is more favorable than Concentrix.

Institutional and Insider Ownership

92.9% of ExlService shares are owned by institutional investors. Comparatively, 90.3% of Concentrix shares are owned by institutional investors. 3.7% of ExlService shares are owned by company insiders. Comparatively, 0.9% of Concentrix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares ExlService and Concentrix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ExlService	11.17%	30.61%	15.66%
Concentrix	-13.16%	19.82%	5.62%

Earnings & Valuation

This table compares ExlService and Concentrix”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ExlService	$2.09 billion	2.57	$251.02 million	$1.59	22.22
Concentrix	$10.00 billion	0.16	-$1.28 billion	($21.32)	-1.26

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

Summary

ExlService beats Concentrix on 13 of the 14 factors compared between the two stocks.

About ExlService

ExlService Holdings, Inc. operates as a data analytics, and digital operations and solutions company in the United States and internationally. The company operates through Insurance, Healthcare, Analytics, and Emerging Business segments. It also provides digital operations and solutions and analytics-driven services, such as claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business acquisition, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey, and customer service using digital technology, artificial intelligence, machine learning, and advanced automation; digital customer acquisition services using a software-as-a-service delivery model through LifePRO and LISS platforms; subrogation services; and Subrosource software platform, an end-to-end subrogation platform. In addition, the company offers health care services related to care management, utilization management, disease management, payment integrity, revenue optimization, and customer engagement. Further, it provides financial planning and analysis, management reporting, forecasting and decision support, data management, regulatory reporting and risk, and compliance services; reservations, customer, and fulfilment services; freight billing, collections, claims management, freight audit, freight scheduling, supply chain management, and revenue assurance services; residential mortgage lending, title verification and validation, retail banking and credit cards, trust verification, commercial banking, and investment management; merchandising, pricing, and demand forecasting; and digital operations and solutions. The company offers predictive and prescriptive analytics in the areas of customer acquisition and lifecycle management. ExlService Holdings, Inc. was founded in 1999 and is headquartered in New York, New York.

About Concentrix

Concentrix Corporation engages in the provision of technology-infused customer experience (CX) solutions worldwide. The company provides CX process optimization, technology innovation, front- and back-office automation, analytics, and business transformation services, across various channels of communication, such as voice, chat, email, social media, asynchronous messaging, and custom applications. It also offers customer lifecycle management; customer experience/user experience strategy and design; analytics and actionable insights; digital transformation services that design and engineer CX solutions to enable efficient customer self-service and build customer loyalty; customer engagement solutions and services that address the entirety of the customer lifecycle; AI technology that can intelligently act on customer intent to improve customer experience with non-human engagement; voice of the customer and analytics solutions to gather and analyze customer feedback to foster loyalty to, and growth with, clients; analytics and consulting solutions that synthesize data and provide professional insight to improve clients’ customer experience strategies; vertical business process outsourcing (BPO) services; and back office BPO services that support clients in non-customer facing areas. The company’s clients include technology and consumer electronics, retail, travel and e-commerce, communications and media, banking, financial services and insurance, healthcare, and others, as well as global IPOs, social brands, and banks. Concentrix Corporation was founded in 2004 and is based in Newark, California.