Concentrix (NASDAQ:CNXC) vs. Planet Labs PBC (NYSE:PL) Financial Analysis

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Planet Labs PBC and Concentrix, as provided by MarketBeat.

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

Planet Labs PBC presently has a consensus price target of $32.77, indicating a potential upside of 99.79%. Concentrix has a consensus price target of $32.75, indicating a potential upside of 17.51%. Given Planet Labs PBC’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Planet Labs PBC is more favorable than Concentrix.

Volatility and Risk

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

Profitability

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

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

Insider & Institutional Ownership

41.7% of Planet Labs PBC shares are owned by institutional investors. Comparatively, 90.3% of Concentrix shares are owned by institutional investors. 16.4% of Planet Labs PBC shares are owned by insiders. Comparatively, 0.9% of Concentrix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Planet Labs PBC and Concentrix”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Planet Labs PBC	$307.73 million	19.40	-$246.86 million	($1.10)	-14.91
Concentrix	$9.83 billion	0.17	-$1.28 billion	($21.32)	-1.31

Planet Labs PBC has higher earnings, but lower revenue 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.

Summary

Planet Labs PBC beats Concentrix on 9 of the 15 factors compared between the two stocks.

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.

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.