Conduent (CNDT) versus Its Competitors Financial Review

Conduent (NASDAQ: CNDT) is one of 171 public companies in the “Business services, not elsewhere classified” industry, but how does it compare to its competitors? We will compare Conduent to similar companies based on the strength of its earnings, profitability, risk, institutional ownership, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

78.6% of Conduent shares are owned by institutional investors. Comparatively, 60.3% of shares of all “Business services, not elsewhere classified” companies are owned by institutional investors. 0.3% of Conduent shares are owned by company insiders. Comparatively, 14.9% of shares of all “Business services, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Conduent and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Conduent $4.47 billion -$1.93 billion 5.90
Conduent Competitors $2.80 billion $353.68 million 11.52

Conduent has higher revenue, but lower earnings than its competitors. Conduent is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Conduent -16.35% 8.56% 2.59%
Conduent Competitors -18.09% -57.55% -6.66%

Volatility and Risk

Conduent has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Conduent’s competitors have a beta of 5.56, suggesting that their average share price is 456% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Conduent and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Conduent 0 0 0 0 N/A
Conduent Competitors 1589 6215 10611 486 2.53

As a group, “Business services, not elsewhere classified” companies have a potential downside of 1.30%. Given Conduent’s competitors higher possible upside, analysts clearly believe Conduent has less favorable growth aspects than its competitors.

About Conduent

Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally. It operates through three segments: Commercial Industries, Government Services, and Transportation. The Commercial Industries segment offers business process services and customized solutions to clients in various industries. The Government Services 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. The Transportation segment offers systems and support comprising of mission-critical mobility and payment solutions to government clients. The company also provides end-user customer experience, transaction processing, commercial healthcare, human resource, and learning services; government healthcare, payment solutions, child support and labor workforce, and federal services; and tolling, transit, photo and parking, and computer-aided dispatch/automatic vehicle location solutions. Conduent Incorporated is headquartered in Florham Park, New Jersey.

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