TaskUs (NASDAQ:TASK – Get Free Report) and Conduent (NASDAQ:CNDT – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
Analyst Ratings
This is a breakdown of current recommendations and price targets for TaskUs and Conduent, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TaskUs | 1 | 5 | 1 | 1 | 2.25 |
| Conduent | 1 | 1 | 0 | 1 | 2.33 |
TaskUs currently has a consensus target price of $9.60, indicating a potential upside of 19.11%. Given TaskUs’ higher possible upside, research analysts clearly believe TaskUs is more favorable than Conduent.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TaskUs | $1.18 billion | 0.62 | $102.28 million | $1.16 | 6.95 |
| Conduent | $2.94 billion | 0.09 | -$170.00 million | ($1.52) | -1.09 |
TaskUs has higher earnings, but lower revenue than Conduent. Conduent is trading at a lower price-to-earnings ratio than TaskUs, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
44.6% of TaskUs shares are held by institutional investors. Comparatively, 77.3% of Conduent shares are held by institutional investors. 31.9% of TaskUs shares are held by insiders. Comparatively, 1.9% of Conduent shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
TaskUs has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500. Comparatively, Conduent has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.
Profitability
This table compares TaskUs and Conduent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TaskUs | 8.75% | 27.02% | 11.58% |
| Conduent | -8.17% | -9.02% | -2.43% |
Summary
TaskUs beats Conduent on 11 of the 14 factors compared between the two stocks.
About TaskUs
TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.
About Conduent
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.
Receive News & Ratings for TaskUs Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TaskUs and related companies with MarketBeat.com's FREE daily email newsletter.
