Convergys Corporation (NYSE: CVG) and Conduent (NYSE:CNDT) are both mid-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.
Convergys Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Conduent does not pay a dividend. Convergys Corporation pays out 30.8% of its earnings in the form of a dividend. Conduent has increased its dividend for 4 consecutive years.
Valuation and Earnings
This table compares Convergys Corporation and Conduent’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Convergys Corporation||$2.91 billion||0.76||$143.00 million||$1.30||18.46|
|Conduent||$6.41 billion||0.51||-$983.00 million||($4.85)||-3.20|
Convergys Corporation has higher revenue, but lower earnings than Conduent. Conduent is trading at a lower price-to-earnings ratio than Convergys Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Convergys Corporation and Conduent, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Convergys Corporation presently has a consensus target price of $26.00, suggesting a potential upside of 8.33%. Conduent has a consensus target price of $18.50, suggesting a potential upside of 19.35%. Given Conduent’s stronger consensus rating and higher probable upside, analysts clearly believe Conduent is more favorable than Convergys Corporation.
Institutional and Insider Ownership
99.8% of Convergys Corporation shares are owned by institutional investors. Comparatively, 84.1% of Conduent shares are owned by institutional investors. 1.7% of Convergys Corporation shares are owned by company insiders. Comparatively, 0.0% of Conduent shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Convergys Corporation and Conduent’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Convergys Corporation beats Conduent on 9 of the 16 factors compared between the two stocks.
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.
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.
Receive News & Ratings for Convergys Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Convergys Corporation and related companies with MarketBeat.com's FREE daily email newsletter.