Conduent (NASDAQ:CNDT) & Franklin Covey (NYSE:FC) Head-To-Head Analysis

Conduent (NASDAQ:CNDT) and Franklin Covey (NYSE:FC) are both small-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Earnings and Valuation

This table compares Conduent and Franklin Covey”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conduent	$3.04 billion	0.08	-$170.00 million	($1.52)	-1.08
Franklin Covey	$267.07 million	0.74	$3.07 million	$0.17	102.64

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

Institutional and Insider Ownership

77.3% of Conduent shares are held by institutional investors. Comparatively, 69.9% of Franklin Covey shares are held by institutional investors. 1.9% of Conduent shares are held by company insiders. Comparatively, 15.2% of Franklin Covey shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Conduent and Franklin Covey, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conduent	1	1	0	1	2.33
Franklin Covey	1	1	2	0	2.25

Franklin Covey has a consensus target price of $27.50, suggesting a potential upside of 57.60%. Given Franklin Covey’s higher possible upside, analysts clearly believe Franklin Covey is more favorable than Conduent.

Risk and Volatility

Conduent has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Franklin Covey has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Profitability

This table compares Conduent and Franklin Covey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conduent	-8.17%	-9.02%	-2.43%
Franklin Covey	0.83%	17.37%	4.04%

Summary

Franklin Covey beats Conduent on 10 of the 15 factors compared between the two stocks.

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.

About Franklin Covey

Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.