Contrasting Conduent (NASDAQ:CNDT) and Brink’s (NYSE:BCO)

Conduent (NASDAQ:CNDT) and Brink’s (NYSE:BCO) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

77.3% of Conduent shares are held by institutional investors. Comparatively, 95.0% of Brink’s shares are held by institutional investors. 3.0% of Conduent shares are held by company insiders. Comparatively, 0.7% of Brink’s shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Conduent and Brink’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conduent	0	0	0	0	0.00
Brink’s	0	0	1	0	3.00

Brink’s has a consensus target price of $138.00, indicating a potential upside of 61.02%. Given Brink’s’ stronger consensus rating and higher possible upside, analysts plainly believe Brink’s is more favorable than Conduent.

Earnings and Valuation

This table compares Conduent and Brink’s”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conduent	$3.19 billion	0.13	$426.00 million	$1.37	1.88
Brink’s	$5.01 billion	0.72	$162.90 million	$3.70	23.16

Conduent has higher earnings, but lower revenue than Brink’s. Conduent is trading at a lower price-to-earnings ratio than Brink’s, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Conduent and Brink’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conduent	8.66%	-11.28%	-3.45%
Brink’s	3.29%	82.89%	4.69%

Risk and Volatility

Conduent has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Brink’s has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Summary

Brink’s beats Conduent on 10 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 Brink’s

The Brink’s Co. engages in providing cash management services, digital retail solutions, and ATM managed services. It operates through the following geographical segments: North America, Latin America, Europe, and Rest of World. The North America segment operates in the U.S. and Canada. The Latin America segment refers to the operations in Latin American countries. The Europe segment relates to operations in European countries. The Rest of World segment focuses on the operations in the Middle East, Africa, and Asia. The company was founded by Perry Brink and Fidelia Brink on May 5, 1859 and is headquartered in Richmond, VA.