Randstad (OTCMKTS:RANJF) versus Conduent (NASDAQ:CNDT) Financial Review

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Conduent and Randstad, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conduent	1	1	0	1	2.33
Randstad	0	0	0	0	0.00

Insider & Institutional Ownership

77.3% of Conduent shares are held by institutional investors. Comparatively, 24.0% of Randstad shares are held by institutional investors. 1.9% of Conduent shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Conduent and Randstad’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%
Randstad	N/A	N/A	N/A

Valuation and Earnings

This table compares Conduent and Randstad”s gross revenue, earnings per share (EPS) 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)	-1.02
Randstad	N/A	N/A	N/A	$1.60	23.27

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

Randstad N.V. provides solutions in the field of work and human resources (HR) services. The company provides temporary staffing and permanent placement services; job posting; and résumé services on digital platforms. It offers inhouse, enterprise and digital, and tech suite services. In addition, the company provides managed services programs, recruitment process outsourcing, outplacement and career development, and online talent acquisition. It has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally. The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018. Randstad N.V. was founded in 1960 and is headquartered in Diemen, the Netherlands.