Concentrix (NASDAQ:CNXC) and Itex (OTCMKTS:ITEX) Financial Review

Concentrix (NASDAQ:CNXC) and Itex (OTCMKTS:ITEX) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a summary of current ratings and price targets for Concentrix and Itex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concentrix	1	1	3	0	2.40
Itex	0	0	0	0	0.00

Concentrix currently has a consensus price target of $48.50, indicating a potential upside of 77.27%. Given Concentrix’s stronger consensus rating and higher possible upside, equities analysts clearly believe Concentrix is more favorable than Itex.

Volatility & Risk

Concentrix has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Itex has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Insider and Institutional Ownership

90.3% of Concentrix shares are held by institutional investors. 0.9% of Concentrix shares are held by company insiders. Comparatively, 32.0% of Itex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concentrix	$9.83 billion	0.17	-$1.28 billion	($21.55)	-1.27
Itex	$5.44 million	0.91	$500,000.00	N/A	N/A

Itex has lower revenue, but higher earnings than Concentrix.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Concentrix	-13.35%	17.80%	5.45%
Itex	N/A	N/A	N/A

Dividends

Concentrix pays an annual dividend of $1.44 per share and has a dividend yield of 5.3%. Itex pays an annual dividend of $0.40 per share and has a dividend yield of 13.5%. Concentrix pays out -6.7% of its earnings in the form of a dividend. Concentrix has increased its dividend for 3 consecutive years.

Summary

Concentrix beats Itex on 10 of the 15 factors compared between 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 Itex

ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company’s marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.