ExlService Holdings (NASDAQ: EXLS) and Lionbridge Technologies (NASDAQ:LIOX) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
Insider & Institutional Ownership
94.7% of ExlService Holdings shares are owned by institutional investors. Comparatively, 63.3% of Lionbridge Technologies shares are owned by institutional investors. 5.8% of ExlService Holdings shares are owned by company insiders. Comparatively, 11.4% of Lionbridge Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares ExlService Holdings and Lionbridge Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ExlService Holdings||$720.56 million||2.78||$101.10 million||$1.97||30.15|
ExlService Holdings has higher revenue and earnings than Lionbridge Technologies. ExlService Holdings is trading at a lower price-to-earnings ratio than Lionbridge Technologies, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
ExlService Holdings has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Lionbridge Technologies has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.
This is a summary of current recommendations for ExlService Holdings and Lionbridge Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ExlService Holdings presently has a consensus target price of $59.45, suggesting a potential upside of 0.09%. Lionbridge Technologies has a consensus target price of $6.38, suggesting a potential upside of 10.87%. Given Lionbridge Technologies’ higher possible upside, analysts plainly believe Lionbridge Technologies is more favorable than ExlService Holdings.
This table compares ExlService Holdings and Lionbridge Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ExlService Holdings beats Lionbridge Technologies on 8 of the 11 factors compared between the two stocks.
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.
About Lionbridge Technologies
Lionbridge Technologies, Inc. is a United States-based company, which provides translation, online marketing, global content management and application testing solutions. The Company enables more than 800 brands to manage international market share and engage their customers in local markets across the world. It offers various solutions, such as Language Translation Services, Global Marketing Services, Website Translation and Localization, Engineering, Technical Publications and Training, Testing Services and Translation Technology. Its portfolio of language translation services includes Website Translation, Software Localization, Real-Time Translation for Chat and Forums, and Interpreter Services. Its Data Management Services allow companies to manage unprocessed data from multiple languages. Its Crowd translation of user-generated content (blogs, messages, surveys, reviews) allows clients to repurpose pieces of consumer advocacy for a new target language.
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