Head to Head Analysis: XBP Europe (NASDAQ:XBP) & ExlService (NASDAQ:EXLS)

XBP Europe (NASDAQ:XBP) and ExlService (NASDAQ:EXLS) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares XBP Europe and ExlService’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XBP Europe	N/A	N/A	-18.77%
ExlService	10.61%	23.23%	13.38%

Institutional and Insider Ownership

15.7% of XBP Europe shares are owned by institutional investors. Comparatively, 92.9% of ExlService shares are owned by institutional investors. 82.5% of XBP Europe shares are owned by company insiders. Comparatively, 4.2% of ExlService shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares XBP Europe and ExlService”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XBP Europe	$166.57 million	0.17	-$11.05 million	N/A	N/A
ExlService	$1.77 billion	4.10	$184.56 million	$1.14	39.61

ExlService has higher revenue and earnings than XBP Europe.

Volatility & Risk

XBP Europe has a beta of -0.32, meaning that its stock price is 132% less volatile than the S&P 500. Comparatively, ExlService has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for XBP Europe and ExlService, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XBP Europe	0	0	0	0	0.00
ExlService	0	1	6	0	2.86

ExlService has a consensus price target of $42.86, indicating a potential downside of 5.08%. Given ExlService’s stronger consensus rating and higher possible upside, analysts clearly believe ExlService is more favorable than XBP Europe.

Summary

ExlService beats XBP Europe on 11 of the 12 factors compared between the two stocks.

About XBP Europe

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.

About ExlService

ExlService Holdings, Inc. operates as a data analytics, and digital operations and solutions company in the United States and internationally. The company operates through Insurance, Healthcare, Analytics, and Emerging Business segments. It also provides digital operations and solutions and analytics-driven services, such as claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business acquisition, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey, and customer service using digital technology, artificial intelligence, machine learning, and advanced automation; digital customer acquisition services using a software-as-a-service delivery model through LifePRO and LISS platforms; subrogation services; and Subrosource software platform, an end-to-end subrogation platform. In addition, the company offers health care services related to care management, utilization management, disease management, payment integrity, revenue optimization, and customer engagement. Further, it provides financial planning and analysis, management reporting, forecasting and decision support, data management, regulatory reporting and risk, and compliance services; reservations, customer, and fulfilment services; freight billing, collections, claims management, freight audit, freight scheduling, supply chain management, and revenue assurance services; residential mortgage lending, title verification and validation, retail banking and credit cards, trust verification, commercial banking, and investment management; merchandising, pricing, and demand forecasting; and digital operations and solutions. The company offers predictive and prescriptive analytics in the areas of customer acquisition and lifecycle management. ExlService Holdings, Inc. was founded in 1999 and is headquartered in New York, New York.