TMS International Corp. (NYSE: TMS) and ExlService Holdings (NASDAQ:EXLS) are both business support services – nec companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Earnings and Valuation

This table compares TMS International Corp. and ExlService Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
TMS International Corp. N/A N/A N/A $0.81 21.59
ExlService Holdings $685.99 million 3.04 $61.73 million $2.11 29.14

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

Insider & Institutional Ownership

94.1% of ExlService Holdings shares are held by institutional investors. 5.8% of ExlService Holdings 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.

Profitability

This table compares TMS International Corp. and ExlService Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TMS International Corp. N/A N/A N/A
ExlService Holdings 9.94% 14.81% 11.40%

Analyst Ratings

This is a breakdown of current recommendations and price targets for TMS International Corp. and ExlService Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TMS International Corp. 0 0 0 0 N/A
ExlService Holdings 1 4 6 0 2.45

ExlService Holdings has a consensus target price of $61.82, indicating a potential upside of 0.55%. Given ExlService Holdings’ higher possible upside, analysts clearly believe ExlService Holdings is more favorable than TMS International Corp..

Summary

ExlService Holdings beats TMS International Corp. on 9 of the 9 factors compared between the two stocks.

About TMS International Corp.

TMS International Corp. (TMS), formerly Metal Services Acquisition Corp., is a provider of outsourced industrial services to steel mills in North America. The Company provides a range of services through two segments: Mill Services Group and Raw Material and Optimization Group. The Mill Services Group segment includes scrap management and preparation; semi-finished and finished material handling; metal recovery and slag handling, processing and sales, and surface conditioning. The Raw Material and Optimization Group segment include raw materials procurement and logistics, and software-based raw materials cost optimization. The Company is a holding company controlled by Onex, and it operates through its wholly-owned subsidiaries, including its primary operating company Tube City IMS, LLC. It operates at 74 customer sites in nine countries across North America, Europe and Latin America, and its global raw materials procurement network spans five continents.

About ExlService Holdings

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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