Critical Survey: Concentrix (NASDAQ:CNXC) and ACV Auctions (NASDAQ:ACVA)

Concentrix (NASDAQ:CNXC) and ACV Auctions (NASDAQ:ACVA) are both mid-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

This table compares Concentrix and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Concentrix	3.08%	17.00%	5.72%
ACV Auctions	-14.53%	-13.20%	-6.17%

Institutional and Insider Ownership

90.3% of Concentrix shares are owned by institutional investors. Comparatively, 88.6% of ACV Auctions shares are owned by institutional investors. 3.0% of Concentrix shares are owned by company insiders. Comparatively, 8.5% of ACV Auctions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Concentrix and ACV Auctions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concentrix	$7.11 billion	0.60	$313.84 million	$4.32	15.24
ACV Auctions	$543.70 million	6.06	-$75.26 million	($0.48)	-41.56

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.

Risk & Volatility

Concentrix has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, ACV Auctions has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Concentrix and ACV Auctions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concentrix	0	1	3	0	2.75
ACV Auctions	0	1	5	0	2.83

Concentrix presently has a consensus target price of $94.75, indicating a potential upside of 43.90%. ACV Auctions has a consensus target price of $21.00, indicating a potential upside of 5.26%. Given Concentrix’s higher probable upside, equities analysts clearly believe Concentrix is more favorable than ACV Auctions.

Summary

Concentrix beats ACV Auctions on 9 of the 14 factors compared between the two stocks.

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.

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.