Conduent (NASDAQ:CNDT) versus TaskUs (NASDAQ:TASK) Head to Head Review

TaskUs (NASDAQ:TASK) and Conduent (NASDAQ:CNDT) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Earnings & Valuation

This table compares TaskUs and Conduent”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TaskUs	$1.18 billion	0.62	$102.28 million	$1.16	6.95
Conduent	$2.94 billion	0.09	-$170.00 million	($1.52)	-1.09

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

Volatility & Risk

TaskUs has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, Conduent has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for TaskUs and Conduent, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TaskUs	1	5	1	1	2.25
Conduent	1	1	0	1	2.33

TaskUs currently has a consensus target price of $9.60, suggesting a potential upside of 19.11%. Given TaskUs’ higher probable upside, analysts clearly believe TaskUs is more favorable than Conduent.

Institutional and Insider Ownership

44.6% of TaskUs shares are held by institutional investors. Comparatively, 77.3% of Conduent shares are held by institutional investors. 31.9% of TaskUs shares are held by company insiders. Comparatively, 1.9% of Conduent shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TaskUs	8.75%	27.02%	11.58%
Conduent	-8.17%	-9.02%	-2.43%

Summary

TaskUs beats Conduent on 11 of the 14 factors compared between the two stocks.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.

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.