Servicemaster Global (NYSE: SERV) and ExlService (NASDAQ:EXLS) are both mid-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.
Insider & Institutional Ownership
92.5% of ExlService shares are owned by institutional investors. 1.2% of Servicemaster Global shares are owned by insiders. Comparatively, 5.8% of ExlService shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Servicemaster Global and ExlService’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Servicemaster Global||$2.75 billion||2.67||$155.00 million||$1.73||31.43|
|ExlService||$685.99 million||2.97||$61.73 million||$2.11||28.45|
Servicemaster Global has higher revenue and earnings than ExlService. ExlService is trading at a lower price-to-earnings ratio than Servicemaster Global, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Servicemaster Global has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, ExlService has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.
This table compares Servicemaster Global and ExlService’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for Servicemaster Global and ExlService, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Servicemaster Global currently has a consensus target price of $53.18, indicating a potential downside of 2.19%. ExlService has a consensus target price of $62.45, indicating a potential upside of 4.06%. Given ExlService’s higher possible upside, analysts plainly believe ExlService is more favorable than Servicemaster Global.
ExlService beats Servicemaster Global on 8 of the 14 factors compared between the two stocks.
About Servicemaster Global
ServiceMaster Global Holdings, Inc. is a provider of essential residential and commercial services. The Company operates through three segments: Terminix, American Home Shield and the Franchise Services Group. Its portfolio of brands includes Terminix, American Home Shield, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. The Terminix segment provides termite and pest control services in the United States. The American Home Shield segment provides home warranty plans that cover the repair or replacement of components of up to 21 household systems and appliances, including electrical, plumbing, central heating and air conditioning (HVAC) systems, dishwashers and ovens/cook tops. The Franchise Services Group segment consists of the ServiceMaster Restore (disaster restoration), ServiceMaster Clean (janitorial), Merry Maids (residential cleaning), Furniture Medic (cabinet and wood furniture repair) and AmeriSpec (home inspection) businesses.
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.
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