Analyzing Concentrix (NASDAQ:CNXC) and Itex (OTCMKTS:ITEX)

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

Insider & Institutional Ownership

90.3% of Concentrix shares are held by institutional investors. 32.0% of Itex shares are held by insiders. Comparatively, 0.9% of Concentrix shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Itex and Concentrix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Itex	0	0	0	0	0.00
Concentrix	1	1	3	0	2.40

Concentrix has a consensus target price of $48.50, indicating a potential upside of 83.57%. Given Concentrix’s stronger consensus rating and higher probable upside, analysts plainly believe Concentrix is more favorable than Itex.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Itex	$5.44 million	0.87	$500,000.00	N/A	N/A
Concentrix	$9.83 billion	0.17	-$1.28 billion	($21.55)	-1.23

Itex has higher earnings, but lower revenue than Concentrix.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Itex	N/A	N/A	N/A
Concentrix	-13.35%	17.80%	5.45%

Dividends

Itex pays an annual dividend of $0.40 per share and has a dividend yield of 14.0%. Concentrix pays an annual dividend of $1.44 per share and has a dividend yield of 5.5%. Concentrix pays out -6.7% of its earnings in the form of a dividend. Concentrix has increased its dividend for 3 consecutive years.

Volatility & Risk

Itex has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Summary

Concentrix beats Itex on 10 of the 15 factors compared between the two stocks.

About Itex

ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company’s marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.

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.