Analyzing Conduent (NASDAQ:CNDT) & Nagarro (OTCMKTS:NGRRF)

Conduent (NASDAQ:CNDT) and Nagarro (OTCMKTS:NGRRF) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

77.3% of Conduent shares are held by institutional investors. 1.8% of Conduent shares are held by company 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conduent	$3.72 billion	0.19	-$296.00 million	($0.90)	-3.93
Nagarro	N/A	N/A	N/A	N/A	N/A

Nagarro has lower revenue, but higher earnings than Conduent.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Conduent and Nagarro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conduent	0	0	1	0	3.00
Nagarro	0	0	0	0	N/A

Conduent currently has a consensus target price of $9.00, indicating a potential upside of 154.24%. Given Conduent’s higher possible upside, research analysts clearly believe Conduent is more favorable than Nagarro.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Conduent	-5.13%	-2.50%	-0.56%
Nagarro	N/A	N/A	N/A

Summary

Conduent beats Nagarro on 5 of the 8 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 Nagarro

Nagarro SE, together with its subsidiaries, provides digital product engineering and technology solutions in North America, Central Europe, rest of Europe, and internationally. The company provides accelerated quality and test engineering; API and integration; application managed services; artificial intelligence, data and analytics; cloud, CRM, DevOps; digital experiences, insights, and ventures; ECM and portals; enterprise agile; enterprise architecture consulting; finops; identity and access management; innovation; low code; mobility solutions; products, resilience, and site reliability engineering; technical communications; and training services. It offers Atlassian, blockchain, business and transformation consulting, digital commerce solutions, embedded systems, ginger ai, internet of things, mainframe and legacy, process consulting, salesforce, sap, security, and transformation and modernization services. In addition, the company offers AR/VR/3D and animation; customer communications; and design studio services. It serves customers in automotive, banking and financial services, energy and utilities, gaming and entertainment, industry and automation, insurance, software and hi-tech, life sciences and healthcare, media and publishing, non-profits and education, private equity, public sector, retail and CPG, telecom, smart buildings, and travel and logistics industries. The company was founded in 1996 and is based in Munich, Germany.