Concentrix Corporation (CNXC) vs DXC Technology Company. (DXC)

Concentrix Corporation and DXC Technology Company. are both Information Technology Services companies. Concentrix Corporation and DXC Technology Company. are of similar size ($1.8B and $1.7B). Concentrix Corporation has negative trailing earnings, so its P/E is not meaningful; DXC Technology Company. trades at 14.6×. Concentrix Corporation grew revenue faster over the last twelve months: 3.89% against −2.42%. DXC Technology Company. has the higher net margin (0.99% vs −13.2%) and the higher return on invested capital (5.28% vs −9.08%). Both pay a dividend; Concentrix Corporation yields more (0.89% vs 0.73%). Across the 20 metrics below, DXC Technology Company. leads on 15 and Concentrix Corporation on 5.

Valuation

Metric CNXC DXC Information Technology Services median
P/E n/m 14.59 14.63
P/S 0.16 0.14 1.13
P/B 0.61 0.52 2.10
Price to free cash flow 3.11 1.64 10.11
EV/EBITDA n/m 2.10 8.56
EV/Sales 0.60 0.26 1.20
Earnings yield (78.73%) 6.85% 4.56%
Free cash flow yield 32.20% 61.06% 4.37%

Profitability

Metric CNXC DXC Information Technology Services median
Gross margin 34.04% 23.00% 31.05%
Operating margin (10.22%) 3.30% 3.30%
Net margin (13.17%) 0.99% 2.09%
Free cash flow margin 5.31% 8.48% 0.00%
Return on equity (37.74%) 3.67% 4.12%
Return on assets (11.50%) 0.94% 0.61%
Return on invested capital (9.08%) 5.28% 0.57%

Growth

Metric CNXC DXC Information Technology Services median
Revenue growth (TTM) 3.89% (2.42%) 7.12%
EPS growth (last fiscal year) (648.79%) (95.24%) —
Revenue growth, 5-year CAGR 15.80% (6.54%) 7.71%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CNXC DXC Information Technology Services median
Debt to equity 1.70 1.05 0.45
Current ratio 1.18 1.41 1.66
Net debt to EBITDA (18.41) 1.09 0.44

Dividend

Metric CNXC DXC Information Technology Services median
Dividend yield 0.89% 0.73% 1.21%
Payout ratio 0.16 0.00 0.00

Size

Metric CNXC DXC Information Technology Services median
Market cap 1.79b 1.73b 1.36b

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