Head-To-Head Comparison: Marchex (NASDAQ:MCHX) and Conduent (NASDAQ:CNDT)

Marchex (NASDAQ:MCHX) and Conduent (NYSE:CNDT) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Marchex and Conduent, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marchex 0 0 2 0 3.00
Conduent 0 5 3 0 2.38

Marchex currently has a consensus target price of $7.00, indicating a potential upside of 100.00%. Conduent has a consensus target price of $12.93, indicating a potential upside of 93.54%. Given Marchex’s stronger consensus rating and higher possible upside, equities analysts clearly believe Marchex is more favorable than Conduent.

Valuation & Earnings

This table compares Marchex 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
Marchex $85.25 million 1.74 -$2.68 million ($0.06) -58.33
Conduent $5.39 billion 0.26 -$416.00 million $1.05 6.36

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

Profitability

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

Net Margins Return on Equity Return on Assets
Marchex -3.66% -1.12% -0.92%
Conduent -35.30% 5.71% 2.71%

Volatility & Risk

Marchex has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Conduent has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.

Insider and Institutional Ownership

49.8% of Marchex shares are owned by institutional investors. Comparatively, 90.1% of Conduent shares are owned by institutional investors. 22.5% of Marchex shares are owned by insiders. Comparatively, 0.9% of Conduent shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Conduent beats Marchex on 8 of the 14 factors compared between the two stocks.

Marchex Company Profile

Marchex, Inc. operates as a call analytics company that helps businesses connect, drive, measure, and convert callers into customers. Its products include Marchex Call Analytics, an analytics platform for enterprises that depend on inbound phone calls to drive sales, appointments, and reservations; Marchex Speech Analytics that enable actionable insights for enterprise, mid-sized, and small businesses; Text Analytics and Communications, which enable businesses to send and receive text/SMS messages with customers; Call Monitoring; Marchex Omnichannel Analytics Cloud products, such as Marchex Search Analytics, a product for search marketers that drive phone calls from search campaigns, as well as Marchex Display and Video Analytics, a product for marketers that buy digital display advertising; Marchex Site Analytics, a product for marketers that can drive phone calls from Websites; and Marchex Social Analytics, a product for marketers that buy social media advertising. The company also offers Marchex Audience Targeting that leverages call data to automatically build audience segments for display and social media platforms; and Marchex Call Marketplace, a mobile advertising network for businesses that depend on inbound phone calls to drive sales, as well as provides advertisers ad placements across various mobile and online media sources to deliver qualified calls to their businesses. In addition, it provides Local Leads platform, a service advertising solution for small business resellers, such as Yellow Pages providers and vertical marketing service providers to sell call advertising, search marketing, and other lead generation products through their existing sales channels to small business advertisers. Marchex, Inc. was founded in 2003 and is headquartered in Seattle, Washington.

Conduent Company Profile

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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