Cardtronics (NASDAQ:CATM) and Conduent (NYSE:CNDT) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
This table compares Cardtronics and Conduent’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for Cardtronics and Conduent, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cardtronics currently has a consensus target price of $39.60, suggesting a potential upside of 77.34%. Conduent has a consensus target price of $6.50, suggesting a potential upside of 168.60%. Given Conduent’s higher probable upside, analysts plainly believe Conduent is more favorable than Cardtronics.
Insider and Institutional Ownership
87.6% of Conduent shares are owned by institutional investors. 19.8% of Cardtronics shares are owned by company insiders. Comparatively, 0.9% of Conduent shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Cardtronics has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Conduent has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.
Earnings & Valuation
This table compares Cardtronics and Conduent’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cardtronics||$1.35 billion||0.74||$48.27 million||$2.16||10.34|
|Conduent||$5.39 billion||0.09||-$416.00 million||$1.05||2.30|
Cardtronics has higher earnings, but lower revenue than Conduent. Conduent is trading at a lower price-to-earnings ratio than Cardtronics, indicating that it is currently the more affordable of the two stocks.
Cardtronics beats Conduent on 10 of the 14 factors compared between the two stocks.
Cardtronics plc provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. The company offers cash dispensing and balance inquiries; and financial related services to cardholders, as well as ATM management and ATM equipment-related services to large retail merchants, smaller retailers, financial institutions, and operators of facilities, such as shopping malls, airports, and train stations. It also provides transaction processing, cash and cash delivery management, supply, and telecommunications, as well as routine and technical maintenance services for ATMs; and owns and operates electronic funds transfer transaction processing platforms that offer transaction processing services to its network of ATMS, as well as other ATMs under managed services arrangements. In addition, the company provides processing services for issuers of debit cards; and owns and operates Allpoint network, a surcharge-free ATM network, which offers surcharge-free ATM access to participating banks, credit unions, and stored-value debit card issuers. As of December 31, 2018, it provided services to approximately 227,000 ATMs in North America, Europe, Africa, Australia, and New Zealand. The company was founded in 1989 and is based in Houston, Texas.
Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States and Europe. It operates through three segments: Commercial Industries, Government Services, and Transportation. The Commercial Industries segment offers business process services and customized solutions to clients in various industries. This segment delivers end-to-end business-to-business and business-to-customer services, including customer care, human resource management, omni-channel communications, and finance and accounting services that enable its clients to optimize their processes. It also provides industry-specific services, such as personalized product information for the automotive industry; digitized source-to-pay solutions for clients in the manufacturing industry; customer experience and marketing services for clients in the retail industry; mortgage and consumer loan processing for clients in the financial services industry; and customized workforce learning solutions for clients in the aerospace industry. The Government Services segment provides government-centric business process services to the United States federal, state, local, and foreign governments for transportation, public assistance, program administration, transaction processing, and payment services. The Transportation segment provides support for electronic toll collection, public transit, parking, and photo enforcement service to transportation departments and agencies worldwide. It also offers payment services comprising prepaid cards, health savings accounts, and child support payments; customer care services; human resources services; finance and accounting services; legal business services; workforce learning services; and applied automation and analytics solutions. The company is headquartered in Florham Park, New Jersey.
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