Contrasting Mistras Group (NYSE:MG) and Concentrix (NASDAQ:CNXC)

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

Earnings & Valuation

This table compares Concentrix and Mistras Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concentrix	$9.83 billion	0.18	-$1.28 billion	($38.90)	-0.76
Mistras Group	$724.02 million	0.95	$16.84 million	$0.83	26.03

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

Volatility & Risk

Concentrix has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Mistras Group has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Insider & Institutional Ownership

90.3% of Concentrix shares are held by institutional investors. Comparatively, 74.9% of Mistras Group shares are held by institutional investors. 0.9% of Concentrix shares are held by insiders. Comparatively, 7.1% of Mistras Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Concentrix	-23.99%	25.00%	6.07%
Mistras Group	3.65%	14.66%	5.89%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Concentrix and Mistras Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concentrix	1	2	3	0	2.33
Mistras Group	0	1	2	0	2.67

Concentrix currently has a consensus price target of $33.50, suggesting a potential upside of 13.19%. Mistras Group has a consensus price target of $19.00, suggesting a potential downside of 12.04%. Given Concentrix’s higher possible upside, equities analysts plainly believe Concentrix is more favorable than Mistras Group.

Summary

Mistras Group beats Concentrix on 8 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 Mistras Group

Mistras Group, Inc. provides technology-enabled asset protection solutions in the United States, other Americas, Europe, and the Asia-Pacific. The company offers non-destructive testing services; inline inspection for pipelines; and plant condition management software. It also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services primarily for process equipment, technologies, and facilities; and utilizes scaffolding and rope access to access at-height and confined assets. In addition, the company offers certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; online condition-monitoring solutions; quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. Further, it builds monitoring systems, as well as provides inspection, maintenance, monitoring and data services; and Web-based solutions. Additionally, the company designs, manufactures, and sells acoustic emission sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures; and ultrasonic testing equipment. It serves oil and gas, aerospace and defense, fossil and nuclear power, power generation and transmission, civil infrastructure, manufacturing, industrial, public infrastructure, petrochemical, transportation, and other process industries, as well as infrastructure, research, and engineering industries. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.