Conduent (NASDAQ:CNDT) vs. Corpay (NYSE:CPAY) Critical Analysis

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

Risk & Volatility

Corpay has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Conduent has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Corpay and Conduent, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corpay	0	3	10	1	2.86
Conduent	0	0	0	0	0.00

Corpay currently has a consensus target price of $400.38, suggesting a potential upside of 29.83%. Given Corpay’s stronger consensus rating and higher probable upside, equities analysts clearly believe Corpay is more favorable than Conduent.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corpay	25.25%	41.46%	7.55%
Conduent	12.69%	-11.39%	-3.21%

Earnings & Valuation

This table compares Corpay and Conduent”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corpay	$3.97 billion	5.45	$1.00 billion	$13.98	22.06
Conduent	$3.36 billion	0.10	$426.00 million	$2.16	0.95

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

Insider and Institutional Ownership

98.8% of Corpay shares are held by institutional investors. Comparatively, 77.3% of Conduent shares are held by institutional investors. 6.1% of Corpay shares are held by company insiders. Comparatively, 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 is poised for long-term growth.

Summary

Corpay beats Conduent on 14 of the 15 factors compared between the two stocks.

About Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.

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.