Convergys Corporation (CVG) versus Conduent (CNDT) Critical Survey
Conduent (NASDAQ: CNDT) and Convergys Corporation (NYSE:CVG) are both mid-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitabiliy.
Convergys Corporation pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. Conduent does not pay a dividend. Convergys Corporation pays out 27.1% of its earnings in the form of a dividend. Conduent has raised its dividend for 4 consecutive years.
Valuation and Earnings
This table compares Conduent and Convergys Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Conduent||$6.28 billion||0.53||$450.00 million||N/A||N/A|
|Convergys Corporation||$2.92 billion||0.78||$366.90 million||$1.33||18.20|
Conduent has higher revenue and earnings than Convergys Corporation.
Insider and Institutional Ownership
99.2% of Convergys Corporation shares are held by institutional investors. 1.7% of Convergys Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Conduent and Convergys Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings for Conduent and Convergys Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Conduent currently has a consensus target price of $17.83, indicating a potential upside of 12.02%. Convergys Corporation has a consensus target price of $30.00, indicating a potential upside of 23.92%. Given Convergys Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Convergys Corporation is more favorable than Conduent.
Convergys Corporation beats Conduent on 9 of the 14 factors compared between the two stocks.
Conduent Company Profile
Conduent Incorporated is a provider of business process services, including transaction-intensive processing, analytics and automation services. The Company’s segments include Commercial Industries, Healthcare and Public Sector. The Commercial Industries segment provides business process services and customized solutions to clients in a range of industries (other than healthcare). The Healthcare segment provides industry-centric business process services to clients across the healthcare industry, including providers, payers, employers, pharmaceutical and life science companies and government agencies. The Public Sector segment provides government-centric business process services and subject matter experts to the United States federal, state and local and foreign governments. The Government Health Enterprise (HE) Medicaid Platform for all current state clients and Student Loan businesses are included in Other.
Convergys Corporation Company Profile
Convergys Corporation is engaged in customer experience outsourcing. The Company’s geographical segments include North America and Rest of World. The Company offers services across industries, including communications and media, technology, financial services, retail, government and healthcare. The Company helps businesses to create customer experiences across multiple interaction channels, such as voice, chat, e-mail and interactive voice response. The Company provides solutions across the customer lifecycle, including sales, customer service, technical support, customer retention and collections. Its omni-channel contact center technology solutions include multichannel interaction solutions, cross-channel integration framework and robotic process automation. It offers analytics and consulting, and software solutions, including integrated customer experience analytics, post-contact surveys, relational loyalty research, and customer segmentation and profiling.
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