Critical Review: ExlService (EXLS) vs. CBIZ (CBZ)
ExlService (NASDAQ: EXLS) and CBIZ (NYSE:CBZ) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.
Insider & Institutional Ownership
92.1% of ExlService shares are held by institutional investors. Comparatively, 84.1% of CBIZ shares are held by institutional investors. 5.8% of ExlService shares are held by insiders. Comparatively, 6.9% of CBIZ 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.
This table compares ExlService and CBIZ’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for ExlService and CBIZ, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ExlService presently has a consensus target price of $61.82, suggesting a potential upside of 0.39%. Given ExlService’s higher possible upside, analysts plainly believe ExlService is more favorable than CBIZ.
Risk & Volatility
ExlService has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.
Valuation and Earnings
This table compares ExlService and CBIZ’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ExlService||$685.99 million||3.05||$61.73 million||$2.11||29.18|
|CBIZ||$799.83 million||1.05||$40.06 million||$0.81||18.95|
ExlService has higher earnings, but lower revenue than CBIZ. CBIZ is trading at a lower price-to-earnings ratio than ExlService, indicating that it is currently the more affordable of the two stocks.
ExlService beats CBIZ on 11 of the 13 factors compared between the two stocks.
ExlService Company Profile
ExlService Holdings, Inc. is an operations management and analytics company. The Company segments include Insurance; Healthcare; Travel, Transportation and Logistics; Finance and Accounting (F&A); Analytics, and All Other. The Insurance operating segment serves property and casualty insurance, life insurance, disability insurance, annuity and retirement services companies. The Healthcare operating segment serves healthcare payers and providers. The Travel, Transportation and Logistics operating segment primarily serves clients in the travel, transport and logistics industries. The F&A operating segment provides finance and accounting business process management (BPM) services across an array of F&A processes. The Analytics services focus on driving business outcomes for its customers by generating data-driven insights across all parts of its customers’ businesses. The All Other segment includes banking and financial services, utilities and consulting operating segments.
CBIZ Company Profile
CBIZ, Inc. (CBIZ) is engaged in the professional services business. The Company operates its professional services business through acquiring and integrating accounting and financial service providers, group health benefits consulting firms, property and casualty brokerage firms, payroll service providers, and valuation and other service firms throughout the United States. Its segments include Financial Services, Benefits and Insurance Services, National Practices, and Corporate and Other. The Financial Services group includes accounting and tax, government healthcare consulting, financial advisory, valuation, and risk and advisory services. The Benefits and Insurance Services group includes group health benefits consulting, payroll, property and casualty, and retirement plan services. The National Practices segment includes managed networking and hardware services, and healthcare consulting.
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