Concentrix (NASDAQ:CNXC) and Broadridge Financial Solutions (NYSE:BR) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.
Profitability
This table compares Concentrix and Broadridge Financial Solutions' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Concentrix | N/A | N/A | N/A |
Broadridge Financial Solutions | 10.27% | 48.98% | 13.16% |
Analyst Ratings
This is a breakdown of recent ratings for Concentrix and Broadridge Financial Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Concentrix | 0 | 0 | 3 | 0 | 3.00 |
Broadridge Financial Solutions | 0 | 3 | 3 | 0 | 2.50 |
Concentrix presently has a consensus price target of $122.50, suggesting a potential downside of 20.45%. Broadridge Financial Solutions has a consensus price target of $154.1667, suggesting a potential downside of 1.18%. Given Broadridge Financial Solutions' higher probable upside, analysts clearly believe Broadridge Financial Solutions is more favorable than Concentrix.
Valuation & Earnings
This table compares Concentrix and Broadridge Financial Solutions' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Concentrix | $4.72 billion | 1.70 | $164.81 million | $5.89 | 26.15 |
Broadridge Financial Solutions | $4.53 billion | 3.99 | $462.50 million | $5.03 | 31.01 |
Broadridge Financial Solutions has lower revenue, but higher earnings than Concentrix. Concentrix is trading at a lower price-to-earnings ratio than Broadridge Financial Solutions, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
85.0% of Broadridge Financial Solutions shares are owned by institutional investors. 2.0% of Broadridge Financial Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Broadridge Financial Solutions beats Concentrix on 9 of the 12 factors compared between the two stocks.