ExlService (NASDAQ:EXLS – Get Free Report) and Clarivate (NYSE:CLVT – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
92.9% of ExlService shares are held by institutional investors. Comparatively, 85.7% of Clarivate shares are held by institutional investors. 3.7% of ExlService shares are held by company insiders. Comparatively, 22.9% of Clarivate shares are held 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.
Valuation & Earnings
This table compares ExlService and Clarivate”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ExlService | $2.09 billion | 2.55 | $251.02 million | $1.59 | 22.06 |
| Clarivate | $2.46 billion | 0.50 | -$201.10 million | ($0.52) | -3.68 |
ExlService has higher earnings, but lower revenue than Clarivate. Clarivate is trading at a lower price-to-earnings ratio than ExlService, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
ExlService has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Clarivate has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
Profitability
This table compares ExlService and Clarivate’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ExlService | 11.17% | 30.61% | 15.66% |
| Clarivate | -13.84% | 9.15% | 3.99% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for ExlService and Clarivate, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ExlService | 0 | 1 | 6 | 0 | 2.86 |
| Clarivate | 3 | 3 | 1 | 0 | 1.71 |
ExlService currently has a consensus target price of $44.50, indicating a potential upside of 26.87%. Clarivate has a consensus target price of $3.02, indicating a potential upside of 57.53%. Given Clarivate’s higher probable upside, analysts plainly believe Clarivate is more favorable than ExlService.
Summary
ExlService beats Clarivate 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 Clarivate
Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.
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