ACV Auctions (NASDAQ:ACVA – Get Free Report) and Concentrix (NASDAQ:CNXC – Get Free Report) are both mid-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.
Institutional & Insider Ownership
88.6% of ACV Auctions shares are held by institutional investors. Comparatively, 90.3% of Concentrix shares are held by institutional investors. 8.5% of ACV Auctions shares are held by insiders. Comparatively, 3.0% of Concentrix shares are held 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.
Volatility and Risk
ACV Auctions has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ACV Auctions | 0 | 1 | 5 | 0 | 2.83 |
| Concentrix | 0 | 1 | 3 | 0 | 2.75 |
ACV Auctions currently has a consensus target price of $21.50, suggesting a potential upside of 3.61%. Concentrix has a consensus target price of $94.75, suggesting a potential upside of 49.50%. Given Concentrix’s higher possible upside, analysts clearly believe Concentrix is more favorable than ACV Auctions.
Earnings and Valuation
This table compares ACV Auctions and Concentrix”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ACV Auctions | $543.70 million | 6.30 | -$75.26 million | ($0.48) | -43.23 |
| Concentrix | $8.65 billion | 0.48 | $313.84 million | $4.32 | 14.67 |
Concentrix has higher revenue and earnings than ACV Auctions. ACV Auctions is trading at a lower price-to-earnings ratio than Concentrix, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ACV Auctions and Concentrix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ACV Auctions | -14.53% | -13.20% | -6.17% |
| Concentrix | 3.08% | 17.00% | 5.72% |
Summary
Concentrix beats ACV Auctions on 9 of the 14 factors compared between the two stocks.
About ACV Auctions
ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company's marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green's seller assurance service for against claims related to defects in the vehicle. It also provides remarketing centers, which offers value-added services, such as vehicle reconditioning and storage for dealers and commercial partners. In addition, the company offers data services, including True360 report, which provides cosmetic and structural vehicle assessments integrated into vehicle history reports for dealer to make wholesale and retail transaction decisions on and off the marketplace; ACV market report provides transaction data and condition reports for comparable used vehicles, including pricing data from third-party sources and allows dealers to determine pricing and valuation strategies for used vehicles; and ACV MAX inventory management software enables dealers to manage their inventory and set pricing while turning vehicles. Further, it provides data and technology through inspection, such as condition reports, virtual lift solutions, apex device, and vehicle intelligence platform; and marketplace enablement, comprising MyACV application, private marketplaces, operations automation, live appraisals, and programmatic buying service. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, 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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