ExlService (NASDAQ:EXLS) and GreenSky (NASDAQ:GSKY) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Profitability
This table compares ExlService and GreenSky's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
ExlService | 8.14% | 13.65% | 7.62% |
GreenSky | 0.72% | -15.29% | 2.19% |
Valuation and Earnings
This table compares ExlService and GreenSky's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
ExlService | $991.35 million | 3.01 | $67.66 million | $2.43 | 36.63 |
GreenSky | $529.65 million | 2.09 | $31.98 million | $0.57 | 10.65 |
ExlService has higher revenue and earnings than GreenSky. GreenSky is trading at a lower price-to-earnings ratio than ExlService, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
ExlService has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, GreenSky has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for ExlService and GreenSky, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
ExlService | 0 | 6 | 2 | 0 | 2.25 |
GreenSky | 4 | 5 | 0 | 0 | 1.56 |
ExlService presently has a consensus target price of $70.1429, suggesting a potential downside of 21.21%. GreenSky has a consensus target price of $3.9167, suggesting a potential downside of 35.48%. Given ExlService's stronger consensus rating and higher possible upside, research analysts clearly believe ExlService is more favorable than GreenSky.
Insider & Institutional Ownership
94.8% of ExlService shares are owned by institutional investors. Comparatively, 35.5% of GreenSky shares are owned by institutional investors. 3.6% of ExlService shares are owned by company insiders. Comparatively, 54.8% of GreenSky shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
ExlService beats GreenSky on 11 of the 14 factors compared between the two stocks.