ExlService (NASDAQ:EXLS) & EPAM Systems (NYSE:EPAM) Head-To-Head Survey

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

Risk and Volatility

EPAM Systems has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, ExlService has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPAM Systems	$5.46 billion	1.33	$377.68 million	$6.73	20.49
ExlService	$2.09 billion	2.32	$251.02 million	$1.54	20.09

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

Analyst Ratings

This is a summary of current ratings and target prices for EPAM Systems and ExlService, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPAM Systems	0	7	11	0	2.61
ExlService	0	1	4	0	2.80

EPAM Systems currently has a consensus price target of $196.06, indicating a potential upside of 42.18%. ExlService has a consensus price target of $43.60, indicating a potential upside of 40.92%. Given EPAM Systems’ higher probable upside, equities analysts clearly believe EPAM Systems is more favorable than ExlService.

Institutional & Insider Ownership

91.6% of EPAM Systems shares are owned by institutional investors. Comparatively, 92.9% of ExlService shares are owned by institutional investors. 4.3% of EPAM Systems shares are owned by company insiders. Comparatively, 4.0% of ExlService shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EPAM Systems	6.92%	13.57%	10.41%
ExlService	12.02%	26.66%	15.39%

Summary

EPAM Systems beats ExlService on 8 of the 14 factors compared between the two stocks.

About EPAM Systems

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; infrastructure management services, such as software development, testing, performance tuning, deployment, maintenance, and support services. It also provides operation solutions comprising integrated engineering practices and smart automation services. In addition, the company offers business, experience, technology, data, and technical advisory consulting services; and digital and service design solutions, which comprise strategy, design, creative, and program management services, as well as physical product development, such as artificial intelligence, robotics, and virtual reality. The company serves the financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, and other industries EPAM Systems, Inc. was founded in 1993 and is headquartered in Newtown, Pennsylvania.

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.