Conduent (NASDAQ:CNDT – Get Free Report) and CBIZ (NYSE:CBZ – Get Free Report) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Institutional and Insider Ownership
77.3% of Conduent shares are held by institutional investors. Comparatively, 87.4% of CBIZ shares are held by institutional investors. 1.8% of Conduent shares are held by company insiders. Comparatively, 5.4% of CBIZ shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Conduent and CBIZ, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Conduent | 0 | 0 | 1 | 0 | 3.00 |
CBIZ | 0 | 0 | 1 | 0 | 3.00 |
Volatility and Risk
Conduent has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.
Earnings & Valuation
This table compares Conduent and CBIZ”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Conduent | $3.63 billion | 0.22 | -$296.00 million | ($0.90) | -4.27 |
CBIZ | $1.59 billion | 2.14 | $120.97 million | $2.47 | 27.44 |
CBIZ has lower revenue, but higher earnings than Conduent. Conduent is trading at a lower price-to-earnings ratio than CBIZ, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Conduent and CBIZ’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Conduent | 0.88% | -7.81% | -1.75% |
CBIZ | 7.12% | 14.58% | 5.78% |
Summary
CBIZ beats Conduent on 9 of the 12 factors compared between 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 CBIZ
CBIZ, Inc. provides financial, insurance, and advisory services in the United States and Canada. It operates through Financial Services, Benefits and Insurance Services, and National Practices segments. The Financial Services segment offers accounting and tax, financial advisory, valuation, risk and advisory, and government healthcare consulting services. The Benefits and Insurance Services provides employee benefits consulting, payroll/human capital management, property and casualty insurance, and retirement and investment services. The National Practices segment offers information technology managed networking and hardware, and health care consulting services. The company primarily serves small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. CBIZ, Inc. was incorporated in 1987 and is headquartered in Independence, Ohio.
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