Conduent (CNDT) versus Convergys Corporation (CVG) Head-To-Head Comparison

Conduent (NASDAQ: CNDT) and Convergys Corporation (NYSE:CVG) are both mid-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitabiliy.

Earnings and Valuation

This table compares Conduent and Convergys Corporation’s gross revenue, earnings per share 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.

Institutional and Insider Ownership

99.2% of Convergys Corporation shares are held by institutional investors. 1.7% of Convergys Corporation shares are held 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Conduent and Convergys Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Conduent 0 5 2 0 2.29
Convergys Corporation 0 2 1 0 2.33

Conduent currently has a consensus price target of $17.83, indicating a potential upside of 12.02%. Convergys Corporation has a consensus price target of $30.00, indicating a potential upside of 23.92%. Given Convergys Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Convergys Corporation is more favorable than Conduent.

Profitability

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
Conduent -0.64% -1.22% -0.52%
Convergys Corporation 4.67% 14.24% 7.94%

Dividends

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.

Summary

Convergys Corporation beats Conduent on 9 of the 14 factors compared between the two stocks.

About Conduent

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.

About Convergys Corporation

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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