E-Home Household Service (NASDAQ:EJH) and Concentrix (NASDAQ:CNXC) are both players in the business services sector, but they offer different strengths and challenges. A detailed comparison reveals insights into their profitability, valuation, institutional ownership, dividends, risk, and analyst recommendations.
Profitability Overview
Profitability metrics provide a clear distinction between the two companies. Concentrix has reported a net margin of -13.02%, while E-Home Household Service has not disclosed such figures. In terms of return on equity, Concentrix stands at 16.91% and boasts a return on assets of 5.49%. These figures suggest that Concentrix is more effective at generating profit relative to its equity and assets compared to E-Home.
Risk Assessment and Volatility
When examining risk, E-Home Household Service has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. In contrast, Concentrix has a beta of 0.48, meaning its stock is 52% less volatile than the S&P 500. This lower volatility may appeal to investors seeking stability.
Analyst opinions further clarify the situation. According to MarketBeat.com, E-Home Household Service has received 100% sell ratings, while Concentrix has garnered a more favorable score with 2.60, indicating a mix of hold and buy recommendations. Concentrix’s consensus price target is $63.75, suggesting a potential upside of 52.73% from its current trading price.
Institutional Ownership Trends
Institutional ownership often reflects investor confidence. Currently, 37.3% of E-Home Household Service shares are held by institutional investors, compared to a substantial 90.3% for Concentrix. The insider ownership also shows a disparity, with 10.7% of E-Home’s shares owned by insiders, while Concentrix has just 3.2%. Strong institutional backing for Concentrix indicates a belief in its long-term growth potential.
Revenue and Valuation Comparison
The revenue figures between the two companies highlight a significant difference. E-Home Household Service reported gross revenue of $49.40 million, while Concentrix posted a staggering $9.83 billion. This substantial difference in scale emphasizes Concentrix’s dominance in the market.
In terms of valuation, E-Home has a price-to-sales ratio of 0.81 and operates at a loss with a net income of -$980,000. Concentrix, however, has a much lower price-to-sales ratio of 0.26 and a net income of -$1.28 billion, coupled with a negative earnings per share of -$20.84. Although E-Home shows higher earnings, its lower revenue underlines a contrasting operational scale compared to Concentrix.
Conclusion: A Clearer Picture
In summary, Concentrix outperforms E-Home Household Service across several key metrics, including profitability, analyst ratings, and institutional ownership. It is evident that Concentrix is regarded as the more favorable option in the eyes of analysts, with a stronger consensus rating and a significant potential upside. The differences in scale and operational metrics suggest that investors may find more robust opportunities with Concentrix, given its established market presence and growth prospects.
E-Home Household Service, founded in 2014 and based in Fuzhou, China, operates in various segments, including household services and senior care. In contrast, Concentrix, established in 2004 and headquartered in Newark, California, specializes in technology-infused customer experience solutions.
This comparison underscores the importance of evaluating multiple factors when assessing investment opportunities in the business services sector.
