Conduent (NASDAQ:CNDT) and CBIZ (NYSE:CBZ) Financial Review

CBIZ (NYSE:CBZ) and Conduent (NASDAQ:CNDT) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

87.4% of CBIZ shares are owned by institutional investors. Comparatively, 77.3% of Conduent shares are owned by institutional investors. 5.4% of CBIZ shares are owned by insiders. Comparatively, 1.8% of Conduent shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares CBIZ and Conduent”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBIZ	$1.59 billion	2.14	$120.97 million	$2.47	27.44
Conduent	$3.63 billion	0.22	-$296.00 million	($0.90)	-4.27

CBIZ has higher earnings, but lower revenue 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.

Volatility & Risk

CBIZ has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Conduent has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CBIZ and Conduent, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBIZ	0	0	1	0	3.00
Conduent	0	0	1	0	3.00

CBIZ presently has a consensus target price of $86.00, indicating a potential upside of 26.88%. Conduent has a consensus target price of $9.00, indicating a potential upside of 134.38%. Given Conduent’s higher possible upside, analysts clearly believe Conduent is more favorable than CBIZ.

Profitability

This table compares CBIZ and Conduent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CBIZ	7.12%	14.58%	5.78%
Conduent	0.88%	-7.81%	-1.75%

Summary

CBIZ beats Conduent on 9 of the 12 factors compared between the two stocks.

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.

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.