Conduent (CNDT) vs. Verisk Analytics (VRSK) Financial Analysis

Conduent (NYSE: CNDT) and Verisk Analytics (NASDAQ:VRSK) are both mid-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Conduent and Verisk Analytics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Conduent 0 5 3 0 2.38
Verisk Analytics 0 9 5 0 2.36

Conduent presently has a consensus price target of $18.50, suggesting a potential upside of 22.44%. Verisk Analytics has a consensus price target of $92.50, suggesting a potential downside of 3.81%. Given Conduent’s stronger consensus rating and higher possible upside, analysts clearly believe Conduent is more favorable than Verisk Analytics.

Earnings & Valuation

This table compares Conduent and Verisk Analytics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Conduent $6.41 billion 0.50 -$983.00 million ($4.85) -3.12
Verisk Analytics $2.00 billion 7.94 $591.20 million $2.72 35.35

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

Insider and Institutional Ownership

88.7% of Conduent shares are owned by institutional investors. Comparatively, 93.3% of Verisk Analytics shares are owned by institutional investors. 0.0% of Conduent shares are owned by company insiders. Comparatively, 3.4% of Verisk Analytics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Conduent and Verisk Analytics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Conduent -16.18% 5.45% 2.35%
Verisk Analytics 22.09% 36.91% 10.86%

Summary

Verisk Analytics beats Conduent on 10 of the 13 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 Verisk Analytics

Verisk Analytics, Inc. is a data analytics provider serving customers in insurance, natural resources and financial services. The Company operates through two segments: Risk Assessment and Decision Analytics. Its Risk Assessment segment serves its property and casualty insurance customers and focuses on prediction of loss, selection and pricing of risk, and compliance with their reporting requirements in each United States state in which they operate. In the Decision Analytics segment, the Company develops predictive models to forecast scenarios and produce both standard and customized analytics that help its customers manage their businesses, including predicting loss, selecting and pricing risk, detecting fraud before and after a loss event, and quantifying losses. It offers predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, natural resources intelligence, economic forecasting and various other fields.

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