Analyzing Concentrix (NASDAQ:CNXC) and Mistras Group (NYSE:MG)

Mistras Group (NYSE:MG) and Concentrix (NASDAQ:CNXC) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mistras Group	3.65%	14.66%	5.89%
Concentrix	-23.99%	25.00%	6.07%

Insider & Institutional Ownership

74.9% of Mistras Group shares are held by institutional investors. Comparatively, 90.3% of Concentrix shares are held by institutional investors. 7.1% of Mistras Group shares are held by insiders. Comparatively, 0.9% of Concentrix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Mistras Group and Concentrix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mistras Group	$739.17 million	0.93	$16.84 million	$0.83	25.91
Concentrix	$9.83 billion	0.21	-$1.28 billion	($38.90)	-0.85

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

Volatility and Risk

Mistras Group has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Mistras Group and Concentrix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mistras Group	0	1	2	0	2.67
Concentrix	1	2	3	0	2.33

Mistras Group presently has a consensus target price of $19.00, suggesting a potential downside of 11.65%. Concentrix has a consensus target price of $33.50, suggesting a potential upside of 1.52%. Given Concentrix’s higher possible upside, analysts clearly believe Concentrix is more favorable than Mistras Group.

Summary

Mistras Group beats Concentrix on 8 of the 14 factors compared between the two stocks.

About Mistras Group

Mistras Group, Inc. provides technology-enabled asset protection solutions in the United States, other Americas, Europe, and the Asia-Pacific. The company offers non-destructive testing services; inline inspection for pipelines; and plant condition management software. It also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services primarily for process equipment, technologies, and facilities; and utilizes scaffolding and rope access to access at-height and confined assets. In addition, the company offers certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; online condition-monitoring solutions; quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. Further, it builds monitoring systems, as well as provides inspection, maintenance, monitoring and data services; and Web-based solutions. Additionally, the company designs, manufactures, and sells acoustic emission sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures; and ultrasonic testing equipment. It serves oil and gas, aerospace and defense, fossil and nuclear power, power generation and transmission, civil infrastructure, manufacturing, industrial, public infrastructure, petrochemical, transportation, and other process industries, as well as infrastructure, research, and engineering industries. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.

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.