Head-To-Head Contrast: Limelight Networks (NASDAQ:LLNW) vs. Concentrix (NASDAQ:CNXC)

Limelight Networks (NASDAQ:LLNWGet Rating) and Concentrix (NASDAQ:CNXCGet Rating) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

51.3% of Limelight Networks shares are held by institutional investors. Comparatively, 75.7% of Concentrix shares are held by institutional investors. 10.4% of Limelight Networks shares are held by insiders. Comparatively, 1.0% of Concentrix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Limelight Networks has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Earnings and Valuation

This table compares Limelight Networks and Concentrix’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Limelight Networks $217.63 million 2.16 -$54.76 million ($0.39) -8.72
Concentrix $5.59 billion 1.38 $405.58 million $8.09 18.10

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

Analyst Ratings

This is a summary of recent recommendations for Limelight Networks and Concentrix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Limelight Networks 1 1 5 1 2.75
Concentrix 0 0 1 0 3.00

Limelight Networks currently has a consensus target price of $5.54, indicating a potential upside of 62.82%. Concentrix has a consensus target price of $202.00, indicating a potential upside of 37.94%. Given Limelight Networks’ higher possible upside, equities research analysts clearly believe Limelight Networks is more favorable than Concentrix.

Profitability

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

Net Margins Return on Equity Return on Assets
Limelight Networks -22.60% -24.22% -10.80%
Concentrix 7.40% 20.51% 9.79%

Summary

Concentrix beats Limelight Networks on 8 of the 14 factors compared between the two stocks.

About Limelight Networks (Get Rating)

Limelight Networks, Inc. provides content delivery network and related services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates private global networks with distributed computing resources and extensive connectivity to last-mile broadband network providers; offers live and on-demand video delivery services; and provides online video platforms that integrates and manages advanced video delivery. It also offers edge computing services; cloud security services that provide defense against malicious website attacks and unauthorized content access; and cloud storage services. In addition, the company provides professional services; and other infrastructure services, such as transit, hardware, and rack space services. It serves companies operating in the media, entertainment, gaming, technology and software, enterprise, retail, and other sectors. The company was founded in 2001 and is headquartered in Tempe, Arizona.

About Concentrix (Get Rating)

Concentrix Corporation provides 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. It also offers customer lifecycle management; customer experience/user experience strategy and design; digital transformation; and voice of the customer and analytics solutions. The company's clients include consumer electronics, technology, e-commerce, and health insurance companies, as well as global IPOs, social brands, and banks. Concentrix Corporation was incorporated in 2009 and is based in Fremont, California.

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