Contrasting ExlService (NASDAQ:EXLS) & Endava (NYSE:DAVA)

ExlService (NASDAQ:EXLSGet Free Report) and Endava (NYSE:DAVAGet Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
ExlService 11.66% 28.50% 15.48%
Endava -0.51% 5.16% 3.23%

Earnings & Valuation

This table compares ExlService and Endava”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ExlService $2.09 billion 2.32 $251.02 million $1.57 20.22
Endava $999.23 million 0.23 $27.45 million ($0.11) -37.95

ExlService has higher revenue and earnings than Endava. Endava 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

ExlService has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Endava has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

92.9% of ExlService shares are owned by institutional investors. Comparatively, 62.2% of Endava shares are owned by institutional investors. 4.0% of ExlService shares are owned by insiders. Comparatively, 18.8% of Endava shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for ExlService and Endava, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ExlService 0 1 4 1 3.00
Endava 1 5 4 0 2.30

ExlService currently has a consensus price target of $41.50, suggesting a potential upside of 30.75%. Endava has a consensus price target of $14.14, suggesting a potential upside of 238.75%. Given Endava’s higher possible upside, analysts clearly believe Endava is more favorable than ExlService.

Summary

ExlService beats Endava on 11 of the 14 factors compared between the two stocks.

About ExlService

(Get Free Report)

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 Endava

(Get Free Report)

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. The company also provides automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, telemetry and monitoring, organizational optimization, and transaction advisory services. Endava plc was founded in 2000 and is headquartered in London, the United Kingdom.

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