Head to Head Review: Concentrix (NASDAQ:CNXC) versus Advantage Solutions (NASDAQ:ADV)

Advantage Solutions (NASDAQ:ADV) and Concentrix (NASDAQ:CNXC) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Valuation & Earnings

This table compares Advantage Solutions and Concentrix”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Solutions	$4.22 billion	0.20	-$63.26 million	($0.41)	-6.46
Concentrix	$9.62 billion	0.33	$251.22 million	$3.71	13.20

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Advantage Solutions and Concentrix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Solutions	0	0	0	0	0.00
Concentrix	0	1	4	1	3.00

Concentrix has a consensus price target of $75.00, indicating a potential upside of 53.09%. Given Concentrix’s stronger consensus rating and higher possible upside, analysts plainly believe Concentrix is more favorable than Advantage Solutions.

Insider & Institutional Ownership

49.8% of Advantage Solutions shares are held by institutional investors. Comparatively, 90.3% of Concentrix shares are held by institutional investors. 6.2% of Advantage Solutions shares are held by insiders. Comparatively, 3.1% of Concentrix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Advantage Solutions	-3.32%	-7.58%	-2.17%
Concentrix	2.61%	16.67%	5.63%

Volatility and Risk

Advantage Solutions has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Summary

Concentrix beats Advantage Solutions on 13 of the 15 factors compared between the two stocks.

About Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, 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.