Head to Head Review: Concentrix (NASDAQ:CNXC) vs. ABM Industries (NYSE:ABM)

ABM Industries (NYSE:ABM) and Concentrix (NASDAQ:CNXC) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ABM Industries	$8.75 billion	0.26	$162.30 million	$2.54	15.29
Concentrix	$9.83 billion	0.15	-$1.28 billion	($21.55)	-1.13

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABM Industries	0	4	1	0	2.20
Concentrix	1	1	3	0	2.40

ABM Industries presently has a consensus price target of $46.25, indicating a potential upside of 19.07%. Concentrix has a consensus price target of $48.50, indicating a potential upside of 99.75%. Given Concentrix’s stronger consensus rating and higher possible upside, analysts clearly believe Concentrix is more favorable than ABM Industries.

Dividends

ABM Industries pays an annual dividend of $1.16 per share and has a dividend yield of 3.0%. Concentrix pays an annual dividend of $1.44 per share and has a dividend yield of 5.9%. ABM Industries pays out 45.7% of its earnings in the form of a dividend. Concentrix pays out -6.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ABM Industries has raised its dividend for 59 consecutive years and Concentrix has raised its dividend for 3 consecutive years. Concentrix is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ABM Industries	1.78%	11.77%	3.99%
Concentrix	-13.35%	17.80%	5.45%

Volatility & Risk

ABM Industries has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Institutional & Insider Ownership

91.6% of ABM Industries shares are owned by institutional investors. Comparatively, 90.3% of Concentrix shares are owned by institutional investors. 0.9% of ABM Industries shares are owned by company insiders. Comparatively, 0.9% of Concentrix 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.

About ABM Industries

ABM Industries Incorporated, through its subsidiaries, engages in the provision of integrated facility, infrastructure, and mobility solutions in the United States and internationally. It operates through Business & Industry, Manufacturing & Distribution, Education, Aviation, and Technical Solutions segments. The company offers janitorial, facilities engineering, and parking services for commercial real estate properties, including corporate offices for high tech clients, sports and entertainment venues, and traditional hospitals and non-acute healthcare facilities; provides vehicle maintenance and other services to rental car providers. It also offers integrated facility services, engineering, and other specialized services in various types of manufacturing, distribution, and data center facilities. In addition, the company delivers custodial and landscaping and grounds for public school districts, private schools, colleges, and universities. Further, it supports airlines and airports with services comprising passenger assistance, catering logistics, air cabin maintenance, and transportation services. Additionally, the company provides electric vehicle power design, installation, and maintenance, as well as microgrid systems installations. ABM Industries Incorporated was founded in 1909 and is headquartered in New York, New York.

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.