Crawford & Company (NYSE:CRD.A – Get Free Report) and Concentrix (NASDAQ:CNXC – Get Free Report) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.
Risk and Volatility
Crawford & Company has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.
Valuation and Earnings
This table compares Crawford & Company and Concentrix”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Crawford & Company | $1.31 billion | 0.42 | $19.63 million | $0.36 | 31.69 |
| Concentrix | $9.83 billion | 0.15 | -$1.28 billion | ($21.55) | -1.09 |
Crawford & Company has higher earnings, but lower revenue than Concentrix. Concentrix is trading at a lower price-to-earnings ratio than Crawford & Company, indicating that it is currently the more affordable of the two stocks.
Dividends
Crawford & Company pays an annual dividend of $0.30 per share and has a dividend yield of 2.6%. Concentrix pays an annual dividend of $1.44 per share and has a dividend yield of 6.1%. Crawford & Company pays out 83.3% 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 -6.7% of its earnings in the form of a dividend. Concentrix has raised its dividend for 3 consecutive years. Concentrix is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Crawford & Company and Concentrix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Crawford & Company | 1.37% | 24.21% | 5.46% |
| Concentrix | -13.35% | 17.80% | 5.45% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Crawford & Company and Concentrix, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Crawford & Company | 0 | 0 | 1 | 0 | 3.00 |
| Concentrix | 1 | 1 | 3 | 0 | 2.40 |
Crawford & Company presently has a consensus price target of $14.00, indicating a potential upside of 22.72%. Concentrix has a consensus price target of $48.50, indicating a potential upside of 105.73%. Given Concentrix’s higher possible upside, analysts clearly believe Concentrix is more favorable than Crawford & Company.
Institutional & Insider Ownership
22.6% of Crawford & Company shares are held by institutional investors. Comparatively, 90.3% of Concentrix shares are held by institutional investors. 54.3% of Crawford & Company 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 company is poised for long-term growth.
Summary
Crawford & Company beats Concentrix on 10 of the 17 factors compared between the two stocks.
About Crawford & Company
Crawford & Company provides claims management and outsourcing solutions to the risk management and insurance industry, and self-insured entities. The company's Crawford Claims Solutions segment offers claims management services related to property, casualty, and catastrophe losses caused by physical damage to commercial and residential real properties, and personal properties, as well as marine losses. It also offers services in the areas of field investigation, catastrophe, evaluation, and resolution of property and casualty insurance claims; and various on-demand inspection, verification, and other task specific field services for businesses and consumers through a mobile platform. Its Crawford TPA Solutions segment provides claims and risk management services; desktop claim adjusting and claims evaluation services; initial loss reporting services for claimants; loss mitigation services, such as medical bill review and case management, and vocational rehabilitation services; and risk management information services, as well as administers trust funds established to pay claims. It offers services for workers' compensation, auto and liability, disability absence and medical management, and accident and health markets. The company's Crawford Specialty Solutions segment offers claims management services related to large and complex losses in various industries, such as commercial property, aviation, forensic accounting, marine and transportation, retail, building and construction, cyber, and energy. It also provides a customer-centric solution for various loss types comprising high-frequency and low-complexity claims, and large complex repairs; and outsourced contractor management services to personal and commercial insurance carriers, and consumer markets. The company operates in the United States, the United Kingdom and the rest of Europe, Canada, Australia, and internationally. Crawford & Company was founded in 1941 and is based in Peachtree Corners, Georgia.
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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