Comparing Unisys (NYSE:UIS) & ExlService (NASDAQ:EXLS)

ExlService (NASDAQ:EXLS) and Unisys (NYSE:UIS) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Volatility & Risk

ExlService has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Unisys has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Valuation & Earnings

This table compares ExlService and Unisys”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ExlService	$1.84 billion	3.32	$198.30 million	$1.47	26.13
Unisys	$2.01 billion	0.09	-$193.40 million	($4.62)	-0.56

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

Institutional and Insider Ownership

92.9% of ExlService shares are owned by institutional investors. Comparatively, 86.9% of Unisys shares are owned by institutional investors. 4.0% of ExlService shares are owned by company insiders. Comparatively, 7.0% of Unisys shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares ExlService and Unisys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ExlService	11.91%	25.60%	15.03%
Unisys	-17.10%	-11.31%	1.58%

Analyst Ratings

This is a breakdown of recent ratings for ExlService and Unisys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ExlService	0	1	4	0	2.80
Unisys	1	2	3	0	2.33

ExlService currently has a consensus price target of $53.00, suggesting a potential upside of 38.00%. Unisys has a consensus price target of $5.88, suggesting a potential upside of 126.40%. Given Unisys’ higher possible upside, analysts clearly believe Unisys is more favorable than ExlService.

Summary

ExlService beats Unisys on 10 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 Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.