Conduent (NASDAQ:CNDT) versus Paymentus (NYSE:PAY) Critical Analysis

Conduent (NASDAQ:CNDTGet Free Report) and Paymentus (NYSE:PAYGet Free Report) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Conduent -7.95% N/A N/A
Paymentus 3.63% 7.42% 6.34%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Conduent and Paymentus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Conduent 0 0 1 0 3.00
Paymentus 0 8 1 0 2.11

Conduent currently has a consensus price target of $9.00, suggesting a potential upside of 176.07%. Paymentus has a consensus price target of $17.00, suggesting a potential downside of 28.09%. Given Conduent’s stronger consensus rating and higher probable upside, analysts plainly believe Conduent is more favorable than Paymentus.

Institutional & Insider Ownership

75.8% of Conduent shares are owned by institutional investors. Comparatively, 12.6% of Paymentus shares are owned by institutional investors. 1.4% of Conduent shares are owned by insiders. Comparatively, 17.6% of Paymentus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Conduent has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Paymentus has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Valuation and Earnings

This table compares Conduent and Paymentus’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Conduent $3.72 billion 0.18 -$296.00 million ($1.40) -2.33
Paymentus $614.49 million 4.77 $22.32 million $0.18 131.33

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

Summary

Paymentus beats Conduent on 8 of the 13 factors compared between the two stocks.

About Conduent

(Get Free Report)

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.

About Paymentus

(Get Free Report)

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, insurance, government, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.

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