Analyzing KBR (NYSE:KBR) & Concentrix (NASDAQ:CNXC)

Concentrix (NASDAQ:CNXC) and KBR (NYSE:KBR) are both mid-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concentrix	$9.83 billion	0.20	-$1.28 billion	($38.90)	-0.82
KBR	$7.79 billion	0.57	$415.00 million	$3.48	10.16

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

Institutional & Insider Ownership

90.3% of Concentrix shares are held by institutional investors. Comparatively, 97.0% of KBR shares are held by institutional investors. 0.9% of Concentrix shares are held by insiders. Comparatively, 1.1% of KBR shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Concentrix	-23.99%	25.00%	6.07%
KBR	5.65%	31.66%	7.67%

Analyst Ratings

This is a breakdown of recent ratings for Concentrix and KBR, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concentrix	1	2	3	0	2.33
KBR	0	5	3	0	2.38

Concentrix presently has a consensus price target of $33.50, suggesting a potential upside of 4.79%. KBR has a consensus price target of $44.83, suggesting a potential upside of 26.75%. Given KBR’s stronger consensus rating and higher probable upside, analysts clearly believe KBR is more favorable than Concentrix.

Dividends

Concentrix pays an annual dividend of $1.48 per share and has a dividend yield of 4.6%. KBR pays an annual dividend of $0.66 per share and has a dividend yield of 1.9%. Concentrix pays out -3.8% of its earnings in the form of a dividend. KBR pays out 19.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Concentrix has increased its dividend for 3 consecutive years and KBR has increased its dividend for 6 consecutive years. Concentrix is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Concentrix has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, KBR has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Summary

KBR beats Concentrix on 12 of the 16 factors compared between the two stocks.

About Concentrix

Concentrix Corporation is a global technology and services company that helps businesses manage customer interactions and improve their operations. Its services include customer care, technical support, sales, back-office processing, and digital transformation, supported by technologies such as analytics, automation, and artificial intelligence. The company serves clients across a range of industries, including technology, financial services, healthcare, retail, and communications. It operates in more than 70 countries, providing services to customers and businesses across multiple regions.

About KBR

KBR, Inc. is a global provider of engineering, technology and professional services. The company serves government and commercial customers through two main businesses: Government Solutions and Sustainable Technology Solutions. Government Solutions supports defense, intelligence, space and civilian agencies with services that include mission support, logistics, science and technology, and operations and maintenance. Sustainable Technology Solutions provides engineering, consulting and project services for energy, chemicals and other industrial markets, along with technologies related to lower-carbon energy and sustainable products.