ExlService (NASDAQ: EXLS) and Atento (NYSE:ATTO) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Atento pays an annual dividend of $0.34 per share and has a dividend yield of 3.6%. ExlService does not pay a dividend. Atento pays out 121.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
ExlService has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Atento has a beta of -0.09, meaning that its share price is 109% less volatile than the S&P 500.
Earnings and Valuation
This table compares ExlService and Atento’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ExlService||$762.31 million||2.68||$48.88 million||$1.39||42.96|
ExlService has higher earnings, but lower revenue than Atento. Atento is trading at a lower price-to-earnings ratio than ExlService, indicating that it is currently the more affordable of the two stocks.
This table compares ExlService and Atento’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for ExlService and Atento, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ExlService currently has a consensus price target of $62.18, indicating a potential upside of 4.12%. Atento has a consensus price target of $14.67, indicating a potential upside of 53.58%. Given Atento’s stronger consensus rating and higher possible upside, analysts plainly believe Atento is more favorable than ExlService.
Institutional & Insider Ownership
92.5% of ExlService shares are held by institutional investors. Comparatively, 95.1% of Atento shares are held by institutional investors. 5.8% of ExlService shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
ExlService beats Atento on 11 of the 16 factors compared between the two stocks.
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.
Atento S.A. is a provider of customer-relationship management and business-process outsourcing (CRM BPO) services and solutions in Latin America. The Company offers a portfolio of CRM BPO services, including customer care, sales, collections, back office and technical support. The Company operates through three segments: EMEA, Americas and Brazil. Its services and solutions are delivered across multiple channels including digital (short message service (SMS), e-mail, chats, social media and applications, among others) and voice, and are enabled by process design, technology and intelligence functions. The Company also has client relationships across a range of industries working in sectors, such as telecommunications, banking and financial services and multi-sector, which comprise the consumer goods, services, public administration, pay television, healthcare, transportation, technology and media industries.
Receive News & Ratings for ExlService Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ExlService and related companies with MarketBeat.com's FREE daily email newsletter.