Head-To-Head Contrast: Concentrix (NASDAQ:CNXC) and Research Solutions (NASDAQ:RSSS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Research Solutions	9.28%	27.45%	9.94%
Concentrix	-13.16%	19.82%	5.62%

Institutional and Insider Ownership

33.6% of Research Solutions shares are held by institutional investors. Comparatively, 90.3% of Concentrix shares are held by institutional investors. 10.9% of Research Solutions shares are held by company insiders. Comparatively, 0.9% of Concentrix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Research Solutions and Concentrix”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Research Solutions	$49.06 million	1.53	$1.27 million	$0.14	16.07
Concentrix	$9.83 billion	0.16	-$1.28 billion	($21.32)	-1.21

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

Volatility and Risk

Research Solutions has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Research Solutions and Concentrix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Research Solutions	0	2	3	0	2.60
Concentrix	2	1	3	0	2.17

Research Solutions currently has a consensus target price of $3.83, indicating a potential upside of 70.37%. Concentrix has a consensus target price of $32.75, indicating a potential upside of 26.47%. Given Research Solutions’ stronger consensus rating and higher possible upside, research analysts plainly believe Research Solutions is more favorable than Concentrix.

Summary

Research Solutions beats Concentrix on 11 of the 13 factors compared between the two stocks.

About Research Solutions

Research Solutions, Inc., through its subsidiaries, provides research cloud-based software-as-a-service software platform and related services to corporate, academic, government and individual researchers in the United States, Europe, and internationally. It provides Discover platform that facilitates search discovery across virtually all scientific, technical, and medical (STM) articles available, including free basic search solutions and advanced search tools, which include the Resolute.ai and scite.ai products, a tools that allows for searching and identifying relevant research and find insights in other datasets adjacent to STM content, such as clinical trial, patent, life science and medtech regulatory information, competitor and technology landscape insights in addition to searching the customer’s internal datasets. The company also offers Article Galaxy, a solution that allows research organizations to load their entitlements, consisting of subscriptions, discount or token packages, and their existing library of articles. In addition, it provides Manage platform, a references solution that allows users to access the article inside the platform including setting up personal folders or team folders and allows researchers to markup and take notes on the articles in a supported browser on a desktop or tablet. Further, the company’s platform facilitates the sale of published STM content sold as individual articles. The company was formerly known as Derycz Scientific, Inc. and changed its name to Research Solutions, Inc. in March 2013. Research Solutions, Inc. was incorporated in 2006 and is based in Henderson, Nevada.

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.