Conduent (NASDAQ:CNDT – Get Free Report) and CBIZ (NYSE:CBZ – Get Free Report) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.
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% |
Institutional & Insider Ownership
77.3% of Conduent shares are owned by institutional investors. Comparatively, 87.4% of CBIZ shares are owned by institutional investors. 1.8% of Conduent shares are owned by insiders. Comparatively, 5.4% of CBIZ shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Conduent | $3.72 billion | 0.17 | -$296.00 million | ($0.90) | -4.36 |
| CBIZ | $1.59 billion | 2.14 | $120.97 million | $2.47 | 27.43 |
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.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Conduent and CBIZ, as reported by MarketBeat.
| 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 |
Conduent currently has a consensus target price of $9.00, suggesting a potential upside of 129.59%. CBIZ has a consensus target price of $86.00, suggesting a potential upside of 26.93%. Given Conduent’s higher possible upside, equities research analysts plainly believe Conduent is more favorable than CBIZ.
Risk & Volatility
Conduent has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
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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