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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verisk Analytics $2.00 billion 7.79 $591.20 million $2.72 34.68
Conduent $6.41 billion 0.51 -$983.00 million ($4.85) -3.19

Verisk Analytics has higher earnings, but lower revenue 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 & Institutional Ownership

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Verisk Analytics and Conduent, as reported by MarketBeat.

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

Verisk Analytics currently has a consensus target price of $92.50, indicating a potential downside of 1.93%. Conduent has a consensus target price of $18.50, indicating a potential upside of 19.74%. Given Conduent’s stronger consensus rating and higher probable upside, analysts plainly believe Conduent is more favorable than Verisk Analytics.

Summary

Verisk Analytics beats Conduent on 10 of the 13 factors compared between the two stocks.

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.

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.

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