Financial Analysis: Concentrix (NASDAQ:CNXC) vs. Flywire (NASDAQ:FLYW)

Concentrix (NASDAQ:CNXC) and Flywire (NASDAQ:FLYW) are both mid-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, risk, institutional ownership, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Concentrix	2.18%	16.57%	5.57%
Flywire	4.23%	2.49%	1.86%

Insider and Institutional Ownership

90.3% of Concentrix shares are owned by institutional investors. Comparatively, 95.9% of Flywire shares are owned by institutional investors. 3.1% of Concentrix shares are owned by insiders. Comparatively, 3.9% of Flywire shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Concentrix has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Flywire has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Concentrix and Flywire, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concentrix	0	1	4	1	3.00
Flywire	0	4	10	1	2.80

Concentrix currently has a consensus target price of $79.00, indicating a potential upside of 79.02%. Flywire has a consensus target price of $25.29, indicating a potential upside of 26.56%. Given Concentrix’s stronger consensus rating and higher probable upside, equities analysts plainly believe Concentrix is more favorable than Flywire.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concentrix	$7.11 billion	0.40	$313.84 million	$3.08	14.33
Flywire	$403.09 million	6.17	-$8.57 million	$0.15	133.20

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

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.

About Flywire

Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company’s platform facilitates payment flows across multiple currencies, payment types, and payment options, as well as provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. The company was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.