Analyzing ExlService (NASDAQ:EXLS) & Payoneer Global (NASDAQ:PAYO)

ExlService (NASDAQ:EXLS) and Payoneer Global (NASDAQ:PAYO) are both mid-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares ExlService and Payoneer Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ExlService	$1.77 billion	4.04	$184.56 million	$1.14	39.04
Payoneer Global	$831.10 million	4.91	$93.33 million	$0.35	30.54

ExlService has higher revenue and earnings than Payoneer Global. Payoneer Global is trading at a lower price-to-earnings ratio than ExlService, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ExlService and Payoneer Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ExlService	10.61%	23.23%	13.38%
Payoneer Global	13.82%	17.78%	1.73%

Insider and Institutional Ownership

92.9% of ExlService shares are held by institutional investors. Comparatively, 82.2% of Payoneer Global shares are held by institutional investors. 4.2% of ExlService shares are held by insiders. Comparatively, 5.6% of Payoneer Global shares are held by 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.

Risk and Volatility

ExlService has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Payoneer Global has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for ExlService and Payoneer Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ExlService	0	1	6	0	2.86
Payoneer Global	0	0	6	1	3.14

ExlService currently has a consensus target price of $42.86, indicating a potential downside of 3.69%. Payoneer Global has a consensus target price of $10.79, indicating a potential upside of 0.90%. Given Payoneer Global’s stronger consensus rating and higher probable upside, analysts plainly believe Payoneer Global is more favorable than ExlService.

Summary

ExlService beats Payoneer Global on 8 of the 14 factors compared between the two stocks.

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.

About Payoneer Global

Payoneer Global Inc. operates as a financial technology company. It operates a payment infrastructure platform that provides customers with a one-stop, global, multi-currency account to serve their accounts receivable and accounts payable needs. The company delivers a suite of services that includes cross-border payments, physical and virtual MasterCard cards, working capital, risk management, and other services. It also offers various payment options with minimal integration required, full back-office functions, and customer support offered. The company's platform delivers bank-grade security, stability, and redundancy. It serves customers, such as small and medium-sized businesses in approximately 190 countries and territories worldwide. Payoneer Global Inc. was founded in 2005 and is headquartered in New York, New York.