Critical Analysis: Conduent (CNDT) and BroadSoft (BSFT)
Conduent (NYSE: CNDT) and BroadSoft (NASDAQ:BSFT) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Institutional & Insider Ownership
88.7% of Conduent shares are held by institutional investors. 0.0% of Conduent shares are held by insiders. Comparatively, 1.5% of BroadSoft shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Conduent and BroadSoft’s gross 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|
BroadSoft has lower revenue, but higher earnings than Conduent. BroadSoft is trading at a lower price-to-earnings ratio than Conduent, indicating that it is currently the more affordable of the two stocks.
This table compares Conduent and BroadSoft’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Conduent and BroadSoft, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Conduent currently has a consensus price target of $18.50, suggesting a potential upside of 22.44%. BroadSoft has a consensus price target of $49.11, suggesting a potential downside of 10.38%. Given Conduent’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Conduent is more favorable than BroadSoft.
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.
BroadSoft, Inc. is a global provider of software and services that enable telecommunications service providers to deliver hosted, cloud-based Unified Communications (UC) to their enterprise customers. The BroadSoft Business solution is a communications and collaboration offering that enables telecommunications service providers to offer businesses and other enterprises UC features and functionalities on a cloud-delivered basis without the need for traditional premise-based private branch exchange (PBX) equipment. BroadSoft Business includes its UC-One, Team-One and CC-One applications. The capabilities of the BroadSoft Business offering can be accessed through desk phones, smartphones, tablets, laptops and personal computers. Its BroadWorks SIP Trunking solution enables service providers to provide Internet protocol (IP) interconnectivity and additional services to enterprises that already have premise-based PBXs. Its training services include systems administration and provisioning.
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