Critical Review: Asure Software (NASDAQ:ASUR) vs. Conduent (NASDAQ:CNDT)

Conduent (NASDAQ:CNDT) and Asure Software (NASDAQ:ASUR) are both small-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Conduent	-9.03%	-10.66%	-2.61%
Asure Software	-2.30%	9.46%	3.72%

Insider and Institutional Ownership

77.3% of Conduent shares are owned by institutional investors. Comparatively, 71.6% of Asure Software shares are owned by institutional investors. 1.9% of Conduent shares are owned by insiders. Comparatively, 8.9% of Asure Software shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Conduent and Asure Software”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conduent	$3.04 billion	0.06	-$170.00 million	($1.55)	-0.80
Asure Software	$140.54 million	2.22	-$13.13 million	($0.12)	-86.22

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

Volatility and Risk

Conduent has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Asure Software has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Conduent and Asure Software, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conduent	1	1	0	1	2.33
Asure Software	1	1	2	1	2.60

Asure Software has a consensus price target of $13.00, suggesting a potential upside of 25.65%. Given Asure Software’s stronger consensus rating and higher probable upside, analysts clearly believe Asure Software is more favorable than Conduent.

Summary

Asure Software beats Conduent on 10 of the 14 factors compared between the two stocks.

About Conduent

Conduent Incorporated is a business services and technology company that helps government agencies and commercial organizations manage complex, high-volume operations. Its services combine digital platforms, data processing and customer support to handle tasks such as payments, claims and customer interactions. For government clients, Conduent supports public programs and services, including benefits administration and healthcare-related operations. For businesses, it provides solutions such as customer experience management, transaction processing and payment services.

About Asure Software

Asure Software provides cloud-based human capital management (HCM) software and services, primarily for small and midsized businesses. Its offerings help employers manage payroll and other workforce-related tasks through a centralized platform. The company’s products and services include payroll processing, human resources management, time and attendance tracking, tax services, benefits administration, and workforce management tools. Asure also provides support and related services to help businesses implement and use its solutions.