Acacia Research (NASDAQ:ACTG – Get Free Report) and Concentrix (NASDAQ:CNXC – Get Free Report) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Dividends
Acacia Research pays an annual dividend of $0.50 per share and has a dividend yield of 13.6%. Concentrix pays an annual dividend of $1.44 per share and has a dividend yield of 4.0%. Acacia Research pays out 1,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Concentrix pays out 30.4% of its earnings in the form of a dividend. Concentrix has raised its dividend for 3 consecutive years.
Risk and Volatility
Acacia Research has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acacia Research | 1 | 0 | 0 | 0 | 1.00 |
| Concentrix | 0 | 2 | 3 | 0 | 2.60 |
Concentrix has a consensus target price of $66.25, indicating a potential upside of 85.37%. Given Concentrix’s stronger consensus rating and higher possible upside, analysts clearly believe Concentrix is more favorable than Acacia Research.
Valuation & Earnings
This table compares Acacia Research and Concentrix”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Acacia Research | $283.95 million | 1.25 | -$36.06 million | $0.05 | 73.60 |
| Concentrix | $9.62 billion | 0.23 | $251.22 million | $4.73 | 7.56 |
Concentrix has higher revenue and earnings than Acacia Research. Concentrix is trading at a lower price-to-earnings ratio than Acacia Research, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
86.7% of Acacia Research shares are held by institutional investors. Comparatively, 90.3% of Concentrix shares are held by institutional investors. 1.1% of Acacia Research shares are held by insiders. Comparatively, 3.2% of Concentrix shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Acacia Research and Concentrix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acacia Research | -2.60% | 1.33% | 1.00% |
| Concentrix | 3.25% | 16.02% | 5.49% |
Summary
Concentrix beats Acacia Research on 14 of the 17 factors compared between the two stocks.
About Acacia Research
Acacia is a publicly traded (Nasdaq: ACTG) company that is focused on acquiring and operating businesses across the industrial, energy and technology sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process, and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management.
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.
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