ExlService (NASDAQ:EXLS) and Stem (NYSE:STEM) Head-To-Head Comparison

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

Analyst Ratings

This is a summary of current recommendations and price targets for Stem and ExlService, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stem	1	5	0	0	1.83
ExlService	0	1	4	0	2.80

Stem presently has a consensus target price of $17.60, suggesting a potential downside of 5.55%. ExlService has a consensus target price of $53.00, suggesting a potential upside of 25.24%. Given ExlService’s stronger consensus rating and higher probable upside, analysts plainly believe ExlService is more favorable than Stem.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stem	62.20%	N/A	-21.71%
ExlService	11.91%	25.60%	15.03%

Insider & Institutional Ownership

61.6% of Stem shares are owned by institutional investors. Comparatively, 92.9% of ExlService shares are owned by institutional investors. 10.2% of Stem shares are owned by company insiders. Comparatively, 4.0% of ExlService shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Stem and ExlService”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stem	$144.58 million	1.08	-$854.01 million	($13.63)	-1.37
ExlService	$2.03 billion	3.31	$198.30 million	$1.47	28.79

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

Volatility & Risk

Stem has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, ExlService has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Summary

ExlService beats Stem on 11 of the 14 factors compared between the two stocks.

About Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.

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.