Conduent (NASDAQ:CNDT – Get Rating) and Alight (NYSE:ALIT – Get Rating) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
profitability
This table compares Conduent and Alight’s net margins, return on equity and return on assets.
| net margins | return on equity | return on assets | |
| conduit | 2.92% | 12.26% | 3.60% |
| light | -1.69% | 6.33% | 2.70% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Conduent and Alight, as reported by MarketBeat.com.
| sell ratings | hold ratings | Buy rating | Strong Buy Ratings | rating score | |
| conduit | 0 | 4 | 0 | 0 | 2.00 |
| light | 0 | 0 | 3 | 0 | 3.00 |
Conduent currently has a consensus price target of $7.00, indicating a potential upside of 44.93%. Alight has a consensus price target of $15.33, indicating a potential upside of 94.59%. Given Alight’s stronger consensus rating and higher possible upside, analysts plainly believe Alight is more favorable than Conduent.
Valuation and Earnings
This table compares Conduent and Alight’s gross revenue, earnings per share (EPS) and valuation.
| Gross revenue | Price/sales ratio | Net Income | Earnings Per Share | Price/earnings ratio | |
| conduit | $4.14 billion | 0.25 | -$28.00 million | $0.49 | 9.86 |
| light | $2.92 billion | 1.52 | -$60.00 million | ($33.75) | -0.23 |
Conduent has higher revenue and earnings than Alight. Alight is trading at a lower price-to-earnings ratio than Conduent, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
77.3% of Conduent shares are owned by institutional investors. Comparatively, 66.9% of Alight shares are owned by institutional investors. 1.0% of Conduent shares are owned by insiders. Comparatively, 4.0% of Alight shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Conduent has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Alight has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.
Summary
Conduent beats Alight on 8 of the 13 factors compared between the two stocks.
Conductor Company Profile (Get Rating)
Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally. It operates through three segments: Commercial Industries, Government Services, and Transportation. The Commercial Industries segment offers business process services and customized solutions to clients in various industries; and end-user customer experience management, transaction processing services, healthcare and human resource, and learning services. The Government Services 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; medical management and fiscal agent care management services; and government healthcare, payment solutions, child support, and federal services. The Transportation segment offers systems and support comprising mission-critical mobility and payment solutions to government clients. 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.
Alight Company Profile (Get Rating)
Alight, Inc. operates as a cloud-based provider of integrated digital human capital and business solutions worldwide. It operates through three segments: Employer Solutions, Professional Services, and Hosted Business. The company’s solutions enable employees to enrich their health, wealth, and wellbeing, which helps organizations achieve a high-performance culture. It offers employer solutions comprising integrated benefits administration, healthcare navigation, financial health, employee wellbeing, and payroll; and professional services, including cloud deployment and consulting offerings that provides human capital and financial platforms, as well as cloud advisory and deployment, and optimization services for cloud platforms, such as Workday, SAP SuccessFactors, Oracle, and Cornerstone OnDemand. Alight, Inc. was founded in 2017 and is headquartered in Lincolnshire, Illinois.
Receive News & Ratings for Conduent Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Conduent and related companies with MarketBeat.com’s FREE daily email newsletter.
Comments are closed.