Contrasting Viad (NYSE:VVI) and Concentrix (NASDAQ:CNXC)

Concentrix (NASDAQ:CNXC) and Viad (NYSE:VVI) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Dividends

Concentrix pays an annual dividend of $1.33 per share and has a dividend yield of 3.0%. Viad pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Concentrix pays out 43.2% of its earnings in the form of a dividend. Viad pays out 80.0% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Concentrix	2.18%	16.57%	5.57%
Viad	2.68%	47.55%	5.49%

Earnings and Valuation

This table compares Concentrix and Viad”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concentrix	$7.11 billion	0.41	$313.84 million	$3.08	14.54
Viad	$1.40 billion	0.67	$16.02 million	$0.50	88.66

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

Analyst Recommendations

This is a breakdown of current recommendations for Concentrix and Viad, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concentrix	0	1	4	1	3.00
Viad	0	0	2	0	3.00

Concentrix presently has a consensus price target of $79.00, suggesting a potential upside of 76.46%. Viad has a consensus price target of $48.00, suggesting a potential upside of 8.28%. Given Concentrix’s higher possible upside, equities research analysts plainly believe Concentrix is more favorable than Viad.

Volatility and Risk

Concentrix has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Viad has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500.

Insider and Institutional Ownership

90.3% of Concentrix shares are held by institutional investors. Comparatively, 89.9% of Viad shares are held by institutional investors. 3.1% of Concentrix shares are held by insiders. Comparatively, 4.1% of Viad 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.

Summary

Concentrix beats Viad on 10 of the 16 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 Viad

Viad Corp provides hospitality, leisure activities, experiential marketing, and live events in the United States, Canada, Europe, the Middle East, and Africa. It operates in three segments: Pursuit, Spiro, and GES Exhibitions. The Pursuit segment offers recreational attractions, hotels and lodges, food and beverage, retail, sightseeing, and ground transportation services. This segment consists of Banff Jasper Collection, the Alaska Collection, the Glacier Park Collection, FlyOver, and Sky Lagoon. The Spiro segment operates as an experiential marketing agency that partners with brands around the world to manage and elevate their global experiential marketing activities. The GES Exhibition segment engages as an exhibition services company that partners with exhibition and conference organizers as a full-service provider of strategic and logistics solutions to manage the complexity of their shows. It serves event organizers and corporate brand marketers; and tour operators, tour wholesalers, destination management companies, and retail travel agencies. Viad Corp was founded in 1926 and is headquartered in Scottsdale, Arizona.