Franklin Covey (NYSE:FC – Get Free Report) and Conduent (NASDAQ:CNDT – Get Free Report) are both small-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.
Institutional and Insider Ownership
69.9% of Franklin Covey shares are held by institutional investors. Comparatively, 77.3% of Conduent shares are held by institutional investors. 15.2% of Franklin Covey shares are held by insiders. Comparatively, 1.9% of Conduent shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Franklin Covey and Conduent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Franklin Covey | 0.83% | 17.37% | 4.04% |
| Conduent | -8.17% | -9.02% | -2.43% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Franklin Covey | $267.07 million | 0.73 | $3.07 million | $0.17 | 101.76 |
| Conduent | $3.04 billion | 0.08 | -$170.00 million | ($1.52) | -1.08 |
Franklin Covey has higher earnings, but lower revenue than Conduent. Conduent is trading at a lower price-to-earnings ratio than Franklin Covey, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Franklin Covey has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Conduent has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for Franklin Covey and Conduent, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Franklin Covey | 1 | 1 | 2 | 0 | 2.25 |
| Conduent | 1 | 1 | 0 | 1 | 2.33 |
Franklin Covey currently has a consensus target price of $27.50, suggesting a potential upside of 58.97%. Given Franklin Covey’s higher probable upside, analysts plainly believe Franklin Covey is more favorable than Conduent.
Summary
Franklin Covey beats Conduent on 10 of the 15 factors compared between the two stocks.
About Franklin Covey
Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.
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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