Grab (NASDAQ:GRAB – Get Free Report) and Conduent (NASDAQ:CNDT – Get Free Report) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Risk and Volatility
Grab has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Conduent has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.
Insider and Institutional Ownership
55.5% of Grab shares are held by institutional investors. Comparatively, 77.3% of Conduent shares are held by institutional investors. 3.6% of Grab shares are held by insiders. Comparatively, 1.8% of Conduent shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Grab | -3.57% | -1.50% | -1.11% |
| Conduent | 12.65% | -7.94% | -1.99% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Grab and Conduent, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grab | 0 | 0 | 9 | 0 | 3.00 |
| Conduent | 0 | 0 | 1 | 0 | 3.00 |
Grab presently has a consensus target price of $5.48, suggesting a potential upside of 0.33%. Conduent has a consensus target price of $9.00, suggesting a potential upside of 152.81%. Given Conduent’s higher probable upside, analysts plainly believe Conduent is more favorable than Grab.
Valuation and Earnings
This table compares Grab and Conduent”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grab | $2.36 billion | 9.08 | -$434.00 million | ($0.02) | -273.00 |
| Conduent | $3.51 billion | 0.16 | -$296.00 million | $2.27 | 1.57 |
Conduent has higher revenue and earnings than Grab. Grab is trading at a lower price-to-earnings ratio than Conduent, indicating that it is currently the more affordable of the two stocks.
Summary
Conduent beats Grab on 8 of the 13 factors compared between the two stocks.
About Grab
Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.
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.
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