Financial Review: Conduent (CNDT) versus The Competition

Conduent (NASDAQ:CNDT) is one of 203 public companies in the “Professional Services” industry, but how does it compare to its rivals? We will compare Conduent to similar businesses based on the strength of its analyst recommendations, earnings, valuation, institutional ownership, profitability, risk and dividends.

Insider and Institutional Ownership

77.3% of Conduent shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are owned by institutional investors. 1.9% of Conduent shares are owned by company insiders. Comparatively, 17.1% of shares of all “Professional Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Conduent and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Conduent	$2.94 billion	-$170.00 million	-0.95
Conduent Competitors	$3.39 billion	$228.38 million	33.33

Conduent’s rivals have higher revenue and earnings than Conduent. Conduent is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Conduent and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conduent	1	1	0	1	2.33
Conduent Competitors	1590	6466	9179	431	2.48

As a group, “Professional Services” companies have a potential upside of 27.55%. Given Conduent’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Conduent has less favorable growth aspects than its rivals.

Profitability

This table compares Conduent and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conduent	-8.17%	-9.02%	-2.43%
Conduent Competitors	-0.13%	35.53%	4.39%

Risk & Volatility

Conduent has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Conduent’s rivals have a beta of 0.97, suggesting that their average stock price is 3% less volatile than the S&P 500.

Summary

Conduent rivals beat Conduent on 10 of the 13 factors compared.

Conduent Company Profile

Conduent Incorporated provides digital business solutions and services for the commercial, government, and transportation spectrum in the United States, Europe, and internationally. It operates through three segments: Commercial, Government Services, and Transportation. The Commercial segment offers business process services and customized solutions to clients in various industries; and customer experience management, business operations, healthcare claims and administration, and human capital solutions. The Government segment provides government-centric business process services to the United States federal, state, local, and foreign governments for public assistance, program administration, transaction processing, and payment services; and digital payments, child support payments, government healthcare, and eligibility and enrollment solutions. The Transportation segment offers systems, support, and revenue-generating solutions to government transportation agency clients; and public safety, mobility, and digital payment solutions. This segment also provides electronic tolling, urban congestion management, and mileage-based user solutions; transit solutions; citation and permit administration, parking enforcement, and curbside demand management solutions; and computer-aided dispatch/automatic vehicle location solutions. Conduent Incorporated was founded in 2016 and is headquartered in Florham Park, New Jersey.