Analyzing Concentrix (NASDAQ:CNXC) and Planet Labs PBC (NYSE:PL)

Concentrix (NASDAQ:CNXC) and Planet Labs PBC (NYSE:PL) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Valuation and Earnings

This table compares Concentrix and Planet Labs PBC”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concentrix	$10.00 billion	0.17	-$1.28 billion	($21.32)	-1.33
Planet Labs PBC	$378.28 million	16.41	-$246.86 million	($1.10)	-15.51

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

Risk and Volatility

Concentrix has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Planet Labs PBC has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Concentrix and Planet Labs PBC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concentrix	1	2	3	0	2.33
Planet Labs PBC	1	6	5	1	2.46

Concentrix presently has a consensus target price of $32.75, suggesting a potential upside of 15.56%. Planet Labs PBC has a consensus target price of $32.77, suggesting a potential upside of 92.06%. Given Planet Labs PBC’s stronger consensus rating and higher probable upside, analysts clearly believe Planet Labs PBC is more favorable than Concentrix.

Profitability

This table compares Concentrix and Planet Labs PBC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Concentrix	-13.16%	19.82%	5.62%
Planet Labs PBC	-95.13%	-93.11%	-29.17%

Dividends

Concentrix pays an annual dividend of $1.44 per share and has a dividend yield of 5.1%. Planet Labs PBC pays an annual dividend of $0.96 per share and has a dividend yield of 5.6%. Concentrix pays out -6.8% of its earnings in the form of a dividend. Planet Labs PBC pays out -87.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Concentrix has increased its dividend for 3 consecutive years. Planet Labs PBC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

90.3% of Concentrix shares are held by institutional investors. Comparatively, 41.7% of Planet Labs PBC shares are held by institutional investors. 0.9% of Concentrix shares are held by insiders. Comparatively, 16.4% of Planet Labs PBC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Planet Labs PBC beats Concentrix on 11 of the 18 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 Planet Labs PBC

Planet Labs PBC engages in the design, construction, and launch constellations of satellites with the intent of providing high cadence geospatial data delivered to customers through an online platform worldwide. The company’s platform offers planet monitoring, basemap, tasking, apps, and application programming interfaces, as well as analytics and planetary variables. It serves agriculture, mapping, energy, forestry, finance and insurance companies, and government agencies. The company was founded in 2010 and is headquartered in San Francisco, California.