Analyzing Concentrix (NASDAQ:CNXC) & Trip.com Group (NASDAQ:TCOM)

Concentrix (NASDAQ:CNXC) and Trip.com Group (NASDAQ:TCOM) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider & Institutional Ownership

90.3% of Concentrix shares are held by institutional investors. Comparatively, 35.4% of Trip.com Group shares are held by institutional investors. 3.0% of Concentrix shares are held by company insiders. Comparatively, 23.0% of Trip.com Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Concentrix and Trip.com Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concentrix	$7.11 billion	0.56	$313.84 million	$4.85	12.51
Trip.com Group	$6.27 billion	4.97	$1.40 billion	$2.22	21.78

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

Volatility & Risk

Concentrix has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Trip.com Group has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Profitability

This table compares Concentrix and Trip.com Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Concentrix	3.53%	17.70%	6.23%
Trip.com Group	22.99%	10.73%	5.93%

Analyst Recommendations

This is a summary of current recommendations for Concentrix and Trip.com Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concentrix	1	1	2	0	2.25
Trip.com Group	0	2	9	0	2.82

Concentrix presently has a consensus price target of $74.75, indicating a potential upside of 23.23%. Trip.com Group has a consensus price target of $61.89, indicating a potential upside of 28.00%. Given Trip.com Group’s stronger consensus rating and higher probable upside, analysts clearly believe Trip.com Group is more favorable than Concentrix.

Summary

Trip.com Group beats Concentrix on 8 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 Trip.com Group

Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, It provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online inquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.