Conduent Inc. (CNDT) vs VERRA MOBILITY CORP (VRRM)

Conduent Inc. and VERRA MOBILITY CORP are both Information Technology Services companies. VERRA MOBILITY CORP is the larger, with a market value of $443.8M against $244.2M — 1.8× the size. Conduent Inc. has negative trailing earnings, so its P/E is not meaningful; VERRA MOBILITY CORP trades at 10.9×. VERRA MOBILITY CORP grew revenue faster over the last twelve months: 11.1% against −0.64%. VERRA MOBILITY CORP has the higher net margin (4.40% vs −8.09%) and the higher return on invested capital (7.10% vs −4.26%). Across the 19 metrics below, VERRA MOBILITY CORP leads on 15 and Conduent Inc. on 4.

Valuation

Metric CNDT VRRM Information Technology Services median
P/E n/m 10.89 15.42
P/S 0.08 0.44 1.08
P/B 0.47 2.00 1.76
Price to free cash flow n/m 4.61 10.62
EV/EBITDA 6.54 5.61 8.98
EV/Sales 0.25 1.42 1.23
Earnings yield (95.00%) 9.18% 4.17%
Free cash flow yield (29.38%) 21.69% 4.44%

Profitability

Metric CNDT VRRM Information Technology Services median
Gross margin 18.25% 55.50% 31.05%
Operating margin (2.69%) 13.59% 3.30%
Net margin (8.09%) 4.40% 2.09%
Free cash flow margin (2.48%) 9.62% 0.00%
Return on equity (36.53%) 15.38% 3.67%
Return on assets (10.06%) 2.67% 0.47%
Return on invested capital (4.26%) 7.10% 0.57%

Growth

Metric CNDT VRRM Information Technology Services median
Revenue growth (TTM) (0.64%) 11.10% 7.12%
EPS growth (last fiscal year) (151.12%) 347.37% 3.37%
Revenue growth, 5-year CAGR (6.08%) 19.99% 7.86%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CNDT VRRM Information Technology Services median
Debt to equity 1.07 4.63 0.45
Current ratio 1.55 2.06 1.66
Net debt to EBITDA 4.32 2.70 0.45

Dividend

Metric CNDT VRRM Information Technology Services median
Dividend yield — — 2.13%
Payout ratio — — 0.30

Size

Metric CNDT VRRM Information Technology Services median
Market cap 244.16m 443.79m 1.16b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack