Comparing ExlService (NASDAQ:EXLS) and Professional Diversity Network (NASDAQ:IPDN)

Professional Diversity Network (NASDAQ:IPDN) and ExlService (NASDAQ:EXLS) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Earnings and Valuation

This table compares Professional Diversity Network and ExlService”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Professional Diversity Network	$6.55 million	0.33	-$6.45 million	($51.05)	-0.06
ExlService	$2.09 billion	2.65	$251.02 million	$1.59	22.94

ExlService has higher revenue and earnings than Professional Diversity Network. Professional Diversity Network 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

Professional Diversity Network has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, ExlService has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Institutional and Insider Ownership

27.8% of Professional Diversity Network shares are held by institutional investors. Comparatively, 92.9% of ExlService shares are held by institutional investors. 0.4% of Professional Diversity Network shares are held by insiders. Comparatively, 3.7% of ExlService shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Professional Diversity Network and ExlService’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Professional Diversity Network	-143.98%	-76.40%	-54.04%
ExlService	11.17%	30.61%	15.66%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Professional Diversity Network and ExlService, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Professional Diversity Network	1	0	0	0	1.00
ExlService	0	1	6	0	2.86

ExlService has a consensus price target of $44.50, suggesting a potential upside of 21.98%. Given ExlService’s stronger consensus rating and higher possible upside, analysts plainly believe ExlService is more favorable than Professional Diversity Network.

Summary

ExlService beats Professional Diversity Network on 13 of the 14 factors compared between the two stocks.

About Professional Diversity Network

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. It operates through three segments: Professional Diversity Network (PDN Network), National Association of Professional Women (NAPW Network), and RemoteMore USA (RemoteMore). The company offers online professional job seeking communities that offers recruitment services, such as single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, hiring campaign marketing and advertising, e-newsletter marketing, and research and outreach services to various cultural groups and employers. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its websites; and contracted software development services. In addition, the company operates a women-only professional networking organization; and offers companies with talented engineers to provide solutions to their software needs. Professional Diversity Network, Inc. was incorporated in 2003 and is headquartered in Chicago, Illinois.

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.