Concentrix (NASDAQ:CNXC – Get Free Report) and Paylocity (NASDAQ:PCTY – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Profitability
This table compares Concentrix and Paylocity’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% |
| Paylocity | 15.23% | 27.02% | 5.78% |
Analyst Recommendations
This is a summary of current ratings for Concentrix and Paylocity, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Concentrix | 2 | 1 | 3 | 0 | 2.17 |
| Paylocity | 0 | 5 | 12 | 0 | 2.71 |
Insider and Institutional Ownership
90.3% of Concentrix shares are held by institutional investors. Comparatively, 94.8% of Paylocity shares are held by institutional investors. 0.9% of Concentrix shares are held by insiders. Comparatively, 19.4% of Paylocity shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Concentrix and Paylocity”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Concentrix | $9.83 billion | 0.16 | -$1.28 billion | ($21.32) | -1.19 |
| Paylocity | $1.77 billion | 4.59 | $269.74 million | $4.95 | 30.98 |
Paylocity has lower revenue, but higher earnings than Concentrix. Concentrix is trading at a lower price-to-earnings ratio than Paylocity, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Concentrix has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Paylocity has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.
Summary
Paylocity beats Concentrix on 12 of the 14 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 Paylocity
Paylocity Holding Corporation engages in the provision of cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers payroll software solution for global payroll, expense management, tax services, on demand payment, and garnishment managed services; and time and labor management software for time and attendance, scheduling, and time collection. It also provides human resources (HR) software solutions for employee self-service, compliance, HR edge, data analytics, and workflows and documents, as well as human resource management system; talent management system for recruiting, onboarding, performance, compensation, and learning; and benefits administration software. In addition, the company offers employee experience platform for community, employee voice, recognition and rewards, video, and modern workforce index; HR reporting software; and mobile HR solutions. Further, it provides implementation and training, client, and tax and regulatory services. The company serves for-profit and non-profit organizations across industries, including business services, financial services, healthcare, manufacturing, restaurants, retail, technology, and others. It sells its products through sales representatives. The company was founded in 1997 and is headquartered in Schaumburg, Illinois.
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