Head to Head Review: Conduent (NASDAQ:CNDT) & Falcon’s Beyond Global (NASDAQ:FBYD)

Falcon’s Beyond Global (NASDAQ:FBYD) and Conduent (NASDAQ:CNDT) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Profitability

This table compares Falcon’s Beyond Global and Conduent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Falcon’s Beyond Global	-8.60%	-50.04%	-19.91%
Conduent	-8.17%	-9.02%	-2.43%

Volatility and Risk

Falcon’s Beyond Global has a beta of -2.51, meaning that its stock price is 351% less volatile than the S&P 500. Comparatively, Conduent has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.

Valuation and Earnings

This table compares Falcon’s Beyond Global and Conduent”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Falcon’s Beyond Global	$14.90 million	70.31	$2.84 million	($0.10)	-86.40
Conduent	$3.04 billion	0.08	-$170.00 million	($1.52)	-1.05

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

Analyst Recommendations

This is a breakdown of recent ratings for Falcon’s Beyond Global and Conduent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Falcon’s Beyond Global	1	0	0	0	1.00
Conduent	1	1	0	1	2.33

Insider & Institutional Ownership

38.9% of Falcon’s Beyond Global shares are held by institutional investors. Comparatively, 77.3% of Conduent shares are held by institutional investors. 25.2% of Falcon’s Beyond Global shares are held by company insiders. Comparatively, 1.9% of Conduent shares are held 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.

Summary

Conduent beats Falcon’s Beyond Global on 9 of the 13 factors compared between the two stocks.

About Falcon’s Beyond Global

Falcon’s Beyond Global, Inc. is an experiential entertainment development enterprise. It connects the world by bringing stories to life through theme parks, resorts, animation, consumer products, gaming, and movies. The company propels intellectual property activations concurrently across physical and digital experiences through three core business units. Falcon’s Creative Group is a themed entertainment and master planning firm. Falcon’s Beyond Destinations develops, owns, and operates global entertainment destinations from resorts, theme parks, and attractions to retail, dining and location-based entertainment venues. Falcon’s Beyond Brands expands franchises across multiple platforms from media to gaming, music to consumer products and beyond. The firm also invents in immersive rides, attractions and technologies for entertainment destinations around the world. The company was founded on July 8, 2022 and is headquartered in Orlando, FL.

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.