Flywire (NASDAQ:FLYW) & Concentrix (NASDAQ:CNXC) Critical Comparison

Flywire (NASDAQ:FLYW) and Concentrix (NASDAQ:CNXC) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Risk and Volatility

Flywire has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flywire	4.23%	2.49%	1.86%
Concentrix	2.18%	16.57%	5.57%

Insider and Institutional Ownership

95.9% of Flywire shares are held by institutional investors. Comparatively, 90.3% of Concentrix shares are held by institutional investors. 3.9% of Flywire shares are held by company insiders. Comparatively, 3.1% of Concentrix shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Flywire and Concentrix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flywire	0	4	10	1	2.80
Concentrix	0	1	4	1	3.00

Flywire presently has a consensus price target of $25.29, indicating a potential upside of 17.66%. Concentrix has a consensus price target of $79.00, indicating a potential upside of 87.38%. Given Concentrix’s stronger consensus rating and higher possible upside, analysts plainly believe Concentrix is more favorable than Flywire.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flywire	$475.14 million	5.63	-$8.57 million	$0.15	143.27
Concentrix	$7.11 billion	0.38	$313.84 million	$3.08	13.69

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

About Flywire

Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company’s platform facilitates payment flows across multiple currencies, payment types, and payment options, as well as provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. The company was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.

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.