Conduent (NASDAQ:CNDT – Get Free Report) and Grab (NASDAQ:GRAB – Get Free Report) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Valuation and Earnings
This table compares Conduent and Grab”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Conduent | $3.51 billion | 0.17 | -$296.00 million | $2.27 | 1.65 |
| Grab | $2.69 billion | 7.60 | -$434.00 million | ($0.02) | -253.50 |
Conduent has higher revenue and earnings than Grab. Grab is trading at a lower price-to-earnings ratio than Conduent, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Conduent | 12.65% | -7.94% | -1.99% |
| Grab | -3.57% | -1.50% | -1.11% |
Analyst Ratings
This is a breakdown of recent ratings for Conduent and Grab, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Conduent | 0 | 0 | 1 | 0 | 3.00 |
| Grab | 1 | 1 | 9 | 0 | 2.73 |
Conduent presently has a consensus target price of $9.00, suggesting a potential upside of 140.64%. Grab has a consensus target price of $5.42, suggesting a potential upside of 6.87%. Given Conduent’s stronger consensus rating and higher possible upside, research analysts plainly believe Conduent is more favorable than Grab.
Volatility and Risk
Conduent has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Grab has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
Institutional & Insider Ownership
77.3% of Conduent shares are owned by institutional investors. Comparatively, 55.5% of Grab shares are owned by institutional investors. 1.8% of Conduent shares are owned by insiders. Comparatively, 3.6% of Grab 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.
Summary
Conduent beats Grab on 9 of the 14 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 Grab
Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.
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