Analyzing Conduent (CNDT) & CIELO S A/S (CIOXY)

CIELO S A/S (OTCMKTS:CIOXY) and Conduent (NYSE:CNDT) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Dividends

CIELO S A/S pays an annual dividend of $0.51 per share and has a dividend yield of 15.0%. Conduent does not pay a dividend.

Institutional and Insider Ownership

0.1% of CIELO S A/S shares are held by institutional investors. Comparatively, 93.6% of Conduent shares are held by institutional investors. 0.4% of Conduent shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

CIELO S A/S has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Conduent has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500.

Profitability

This table compares CIELO S A/S and Conduent’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CIELO S A/S 35.14% 25.67% 4.71%
Conduent 2.63% 6.53% 3.01%

Valuation and Earnings

This table compares CIELO S A/S and Conduent’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CIELO S A/S $3.64 billion 2.55 $1.27 billion N/A N/A
Conduent $6.02 billion 0.70 $181.00 million $0.85 23.41

CIELO S A/S has higher earnings, but lower revenue than Conduent.

Analyst Recommendations

This is a summary of current recommendations and price targets for CIELO S A/S and Conduent, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CIELO S A/S 0 1 0 0 2.00
Conduent 0 3 5 0 2.63

Conduent has a consensus price target of $23.17, indicating a potential upside of 16.42%. Given Conduent’s stronger consensus rating and higher probable upside, analysts clearly believe Conduent is more favorable than CIELO S A/S.

CIELO S A/S Company Profile

Cielo S.A., through its subsidiaries, provides payment services in Brazil. The company is involved in the provision of services related to credit and debit cards, and other payment methods, including signing up of merchants and service providers; rental, installation, and maintenance of point of sale terminals; and data capture and processing of electronic and manual transactions. It also offers services related in the processing means of payments that involve cards, maintenance services, and contacts with merchants for acceptance of credit and debit cards; data transmission services to load fixed or mobile phone credits; software development and licensing of computer programs; electronic transactions processing; IT services for collection and management of accounts payable and receivable; and data processing services and support services to medical companies. The company was formerly known as Companhia Brasileira de Meios de Pagamento and changed its name to Cielo S.A. in December 2009. Cielo S.A. was founded in 1995 and is headquartered in Barueri, Brazil.

Conduent Company Profile

Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States and internationally. It operates in two segments, Commercial Industries and Public Sector. The Commercial Industries segment offers business process services and customized solutions to clients in various industries. This segment delivers end-to-end business-to-business and business-to-customer services, including customer care, human resource management, and finance and accounting services that enable its clients to optimize their processes. It also provides industry-specific services, such as personalized product information for the automotive industry; digitized source-to-pay solutions for clients in the manufacturing industry; customer experience and marketing services for clients in the retail industry; mortgage and consumer loan processing for clients in the financial services industry; and customized workforce learning solutions for clients in the aerospace industry. The Public Sector segment provides government-centric business process services to the United States federal, state, and local, as well as foreign governments for transportation, public assistance, program administration, transaction processing, and payment services. The company also maintains Government Health Enterprise Medicaid Platform systems. In addition, it offers payment services comprising prepaid cards, health savings accounts, and child support payments; customer care services; human resources services; finance and accounting services; legal business services; workforce learning services; and applied automation and analytics solutions. The company is headquartered in Florham Park, New Jersey.

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