Conduent (NASDAQ:CNDT – Get Free Report) and BlackSky Technology (NYSE:BKSY – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Volatility & Risk
Conduent has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, BlackSky Technology has a beta of 2.7, meaning that its share price is 170% more volatile than the S&P 500.
Insider & Institutional Ownership
77.3% of Conduent shares are owned by institutional investors. Comparatively, 27.1% of BlackSky Technology shares are owned by institutional investors. 1.9% of Conduent shares are owned by insiders. Comparatively, 5.2% of BlackSky Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Conduent | -8.17% | -9.02% | -2.43% |
| BlackSky Technology | -61.24% | -51.24% | -14.80% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Conduent and BlackSky Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Conduent | 1 | 1 | 0 | 1 | 2.33 |
| BlackSky Technology | 1 | 1 | 2 | 1 | 2.60 |
BlackSky Technology has a consensus target price of $39.33, indicating a potential upside of 88.21%. Given BlackSky Technology’s stronger consensus rating and higher possible upside, analysts clearly believe BlackSky Technology is more favorable than Conduent.
Valuation and Earnings
This table compares Conduent and BlackSky Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Conduent | $3.04 billion | 0.08 | -$170.00 million | ($1.52) | -1.05 |
| BlackSky Technology | $106.57 million | 8.02 | -$70.26 million | ($1.82) | -11.48 |
BlackSky Technology has lower revenue, but higher earnings than Conduent. BlackSky Technology is trading at a lower price-to-earnings ratio than Conduent, indicating that it is currently the more affordable of the two stocks.
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.
About BlackSky Technology
BlackSky Technology Inc. provides geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operation of satellite and ground systems for government and commercial customers in North America, the Middle East, the Asia Pacific, and internationally. The company's Spectra software platform processes a range of observations from its satellite constellation and various external data sources, including imaging, radar and radio frequency satellites, environmental sensors, asset tracking sensors, Internet-of-Things (IoT) connected devices, internet-enabled narrative sources, and a variety of geotemporal data feeds. It offers a range of services related to object, change and anomaly detection, site monitoring, and enhanced analytics, which helps to detect key pattern of life changes in critical locations, including strategic locations and infrastructure comprising ports, airports, and construction sites; retail activity; commodities stockpiles; and other sites that contain critical commodities and supply chain inventory. In addition, the company develops and delivers satellites and payload systems; and provides professional and engineering services. Its products and services are used in national security, supply chain intelligence, crisis management, critical infrastructure monitoring, economic intelligence, and other applications. BlackSky Technology Inc. was incorporated in 2018 and is headquartered in Herndon, Virginia.
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