Analyzing YY Group (NASDAQ:YYGH) and Concentrix (NASDAQ:CNXC)

Concentrix (NASDAQ:CNXC) and YY Group (NASDAQ:YYGH) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Concentrix	-13.35%	17.80%	5.45%
YY Group	N/A	N/A	N/A

Institutional & Insider Ownership

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

Valuation and Earnings

This table compares Concentrix and YY Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concentrix	$9.83 billion	0.16	-$1.28 billion	($21.55)	-1.22
YY Group	$57.24 million	0.00	-$21.42 million	N/A	N/A

YY Group has lower revenue, but higher earnings than Concentrix.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Concentrix and YY Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concentrix	1	1	3	0	2.40
YY Group	1	0	0	0	1.00

Concentrix presently has a consensus price target of $48.50, indicating a potential upside of 84.62%. Given Concentrix’s stronger consensus rating and higher possible upside, analysts clearly believe Concentrix is more favorable than YY Group.

Volatility & Risk

Concentrix has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, YY Group has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.

Summary

Concentrix beats YY Group on 9 of the 12 factors compared between the two stocks.

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.

About YY Group

YY Group Holding Limited, a data and technology driven company, provides manpower outsourcing and cleaning services in Singapore and Malaysia. Its cleaning services include commercial cleaning for offices and schools; hospitality cleaning for hotels and shopping centers; industrial cleaning, facade cleaning, disinfection, and stewarding services for meetings, incentives, conferences, and exhibitions, as well as banquets; and pest control services. The company also offers cleaning robots and machines to enhance cleaning performance by deploying them at designated premises. In addition, it provides YY Smart iClean App, which is a smart toilet central management platform. Further, the company offers manpower contracting services; employment agencies; general cleaning services; manpower outsourcing with information technology solution; management consulting; and employment placement and recruitment services. YY Group Holding Limited was founded in 2010 and is headquartered in Singapore.