CorVel (NASDAQ:CRVL) versus Concentrix (NASDAQ:CNXC) Head to Head Comparison

CorVel (NASDAQ:CRVL) and Concentrix (NASDAQ:CNXC) are both mid-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CorVel and Concentrix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CorVel	0	1	0	0	2.00
Concentrix	0	2	3	0	2.60

Concentrix has a consensus target price of $66.25, suggesting a potential upside of 41.17%. Given Concentrix’s stronger consensus rating and higher possible upside, analysts plainly believe Concentrix is more favorable than CorVel.

Insider and Institutional Ownership

51.4% of CorVel shares are held by institutional investors. Comparatively, 90.3% of Concentrix shares are held by institutional investors. 44.6% of CorVel shares are held by company insiders. Comparatively, 3.2% of Concentrix shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

CorVel has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CorVel	10.98%	32.31%	18.33%
Concentrix	3.25%	16.02%	5.49%

Earnings and Valuation

This table compares CorVel and Concentrix”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CorVel	$895.59 million	4.33	$95.17 million	$1.94	38.98
Concentrix	$9.72 billion	0.30	$251.22 million	$4.73	9.92

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

About CorVel

CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.

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.