Paltalk (NASDAQ:PALT – Get Free Report) and Concentrix (NASDAQ:CNXC – Get Free Report) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Risk & Volatility
Paltalk has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
Earnings & Valuation
This table compares Paltalk and Concentrix”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Paltalk | $9.64 million | 1.97 | -$1.07 million | ($0.34) | -6.06 |
| Concentrix | $9.62 billion | 0.30 | $251.22 million | $3.71 | 12.18 |
Insider and Institutional Ownership
3.9% of Paltalk shares are owned by institutional investors. Comparatively, 90.3% of Concentrix shares are owned by institutional investors. 18.7% of Paltalk shares are owned by company insiders. Comparatively, 3.2% of Concentrix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Paltalk and Concentrix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Paltalk | -33.40% | -16.94% | -14.15% |
| Concentrix | 2.61% | 16.67% | 5.63% |
Analyst Recommendations
This is a summary of recent recommendations for Paltalk and Concentrix, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paltalk | 0 | 1 | 0 | 0 | 2.00 |
| Concentrix | 0 | 1 | 4 | 1 | 3.00 |
Paltalk currently has a consensus price target of $4.50, indicating a potential upside of 118.45%. Concentrix has a consensus price target of $75.00, indicating a potential upside of 66.04%. Given Paltalk’s higher probable upside, equities analysts clearly believe Paltalk is more favorable than Concentrix.
Summary
Concentrix beats Paltalk on 11 of the 15 factors compared between the two stocks.
About Paltalk
Paltalk, Inc., together with its subsidiaries, develops communications software and multimedia social applications worldwide. It offers consumer applications, which include Paltalk, Camfrog, and Tinychat for live video chat; and owns and operates Vumber, a telecommunications services provider that enables users to have multiple phone numbers in any area code through which calls can be forwarded to a user’s existing cell phone or land line telephone number. The company provides ManyCam, a live streaming software and virtual camera that allows users to deliver professional live videos on streaming platforms, video conferencing applications, and distance learning tools; and product payment options, where users can pay by credit card, PayPal, western union, check, local e-wallet providers, or complete an in-app purchase through the Apple App Store or Google Play Store for Android users. The company was formerly known as PeerStream, Inc. and changed its name to Paltalk, Inc. in May 2020. Paltalk, Inc. was incorporated in 2005 and is based in Jericho, 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.
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