Convergys Corporation (NYSE: CVG) and Verisk Analytics (NASDAQ:VRSK) are both mid-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitabiliy and earnings.

Dividends

Convergys Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Verisk Analytics does not pay a dividend. Convergys Corporation pays out 30.1% of its earnings in the form of a dividend. Verisk Analytics has raised its dividend for 4 consecutive years.

Insider & Institutional Ownership

99.7% of Convergys Corporation shares are owned by institutional investors. Comparatively, 92.1% of Verisk Analytics shares are owned by institutional investors. 1.7% of Convergys Corporation shares are owned by company insiders. Comparatively, 3.4% of Verisk Analytics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Convergys Corporation and Verisk Analytics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Convergys Corporation $2.92 billion 0.77 $366.90 million $1.33 18.05
Verisk Analytics $2.01 billion 7.17 $933.90 million $3.55 24.54

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

Analyst Ratings

This is a summary of current recommendations for Convergys Corporation and Verisk Analytics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Convergys Corporation 0 2 1 0 2.33
Verisk Analytics 0 7 2 0 2.22

Convergys Corporation presently has a consensus target price of $30.00, suggesting a potential upside of 24.95%. Verisk Analytics has a consensus target price of $85.38, suggesting a potential downside of 1.99%. Given Convergys Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Convergys Corporation is more favorable than Verisk Analytics.

Profitability

This table compares Convergys Corporation and Verisk Analytics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Convergys Corporation 4.67% 14.24% 7.94%
Verisk Analytics 30.29% 37.52% 11.27%

Volatility & Risk

Convergys Corporation has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Verisk Analytics has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Summary

Verisk Analytics beats Convergys Corporation on 11 of the 17 factors compared between the two stocks.

About Convergys Corporation

Convergys Corporation is engaged in customer experience outsourcing. The Company’s geographical segments include North America and Rest of World. The Company offers services across industries, including communications and media, technology, financial services, retail, government and healthcare. The Company helps businesses to create customer experiences across multiple interaction channels, such as voice, chat, e-mail and interactive voice response. The Company provides solutions across the customer lifecycle, including sales, customer service, technical support, customer retention and collections. Its omni-channel contact center technology solutions include multichannel interaction solutions, cross-channel integration framework and robotic process automation. It offers analytics and consulting, and software solutions, including integrated customer experience analytics, post-contact surveys, relational loyalty research, and customer segmentation and profiling.

About Verisk Analytics

Verisk Analytics, Inc. is a data analytics provider serving customers in insurance, natural resources and financial services. The Company operates through two segments: Risk Assessment and Decision Analytics. Its Risk Assessment segment serves its property and casualty insurance customers and focuses on prediction of loss, selection and pricing of risk, and compliance with their reporting requirements in each United States state in which they operate. In the Decision Analytics segment, the Company develops predictive models to forecast scenarios and produce both standard and customized analytics that help its customers manage their businesses, including predicting loss, selecting and pricing risk, detecting fraud before and after a loss event, and quantifying losses. It offers predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, natural resources intelligence, economic forecasting and various other fields.

Receive News & Ratings for Convergys Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Convergys Corporation and related companies with MarketBeat.com's FREE daily email newsletter.