ExlService (NASDAQ:EXLS) and Professional Diversity Network (NASDAQ:IPDN) Financial Survey

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

Analyst Ratings

This is a summary of current ratings and target prices for ExlService and Professional Diversity Network, as reported by MarketBeat.

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

ExlService currently has a consensus price target of $44.50, indicating a potential upside of 28.27%. Given ExlService’s stronger consensus rating and higher probable upside, research analysts plainly believe ExlService is more favorable than Professional Diversity Network.

Institutional and Insider Ownership

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

Earnings and Valuation

This table compares ExlService and Professional Diversity Network”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ExlService	$2.24 billion	2.35	$251.02 million	$1.59	21.82
Professional Diversity Network	$6.55 million	0.44	-$6.45 million	($51.05)	-0.08

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.

Profitability

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

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

Risk and Volatility

ExlService has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Professional Diversity Network has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Summary

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

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.

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.