Performant Financial Corporation (NASDAQ: PFMT) and ExlService Holdings (NASDAQ:EXLS) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Volatility and Risk
Performant Financial Corporation has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, ExlService Holdings has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
Earnings and Valuation
This table compares Performant Financial Corporation and ExlService Holdings’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Performant Financial Corporation||$134.02 million||0.71||$6.52 million||($0.36)||-5.19|
|ExlService Holdings||$720.56 million||2.62||$101.10 million||$1.97||28.42|
ExlService Holdings has higher revenue and earnings than Performant Financial Corporation. Performant Financial Corporation is trading at a lower price-to-earnings ratio than ExlService Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Performant Financial Corporation and ExlService Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Performant Financial Corporation||-13.74%||-6.81%||-3.17%|
This is a summary of recent recommendations and price targets for Performant Financial Corporation and ExlService Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Performant Financial Corporation||0||1||0||0||2.00|
ExlService Holdings has a consensus price target of $59.40, indicating a potential upside of 6.11%. Given ExlService Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe ExlService Holdings is more favorable than Performant Financial Corporation.
Institutional and Insider Ownership
54.7% of Performant Financial Corporation shares are owned by institutional investors. Comparatively, 94.9% of ExlService Holdings shares are owned by institutional investors. 33.6% of Performant Financial Corporation shares are owned by insiders. Comparatively, 5.8% of ExlService Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
ExlService Holdings beats Performant Financial Corporation on 12 of the 13 factors compared between the two stocks.
About Performant Financial Corporation
Performant Financial Corporation (Performant) provides technology-enabled recovery and related analytics services in the United States. The Company’s services identify and recover delinquent or defaulted assets and improper payments for both government and private clients in a range of markets. The Company provides its services on an outsourced basis where the Company handles many or all aspects of its clients’ recovery processes. The Company uses its technology-enabled services platform to provide recovery and analytics services in a range of markets for the identification and recovery of student loans, improper healthcare payments and delinquent state tax and federal treasury receivables. It provides recovery services to the government-supported student loan industry and its clients include the Department of Education and Guaranty Agencies, as well as private financial institutions. The Company provides recovery services related to improper payments in the healthcare market.
About ExlService Holdings
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.
Receive News & Ratings for Performant Financial Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Performant Financial Corporation and related companies with our FREE daily email newsletter.