Contrasting ExlService (NASDAQ:EXLS) & BigBear.ai (NYSE:BBAI)

BigBear.ai (NYSE:BBAI) and ExlService (NASDAQ:EXLS) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Risk & Volatility

BigBear.ai has a beta of 3.42, indicating that its share price is 242% more volatile than the S&P 500. Comparatively, ExlService has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Insider and Institutional Ownership

7.6% of BigBear.ai shares are held by institutional investors. Comparatively, 92.9% of ExlService shares are held by institutional investors. 0.5% of BigBear.ai shares are held by insiders. Comparatively, 4.0% of ExlService shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BigBear.ai	-274.70%	-45.51%	-15.65%
ExlService	11.91%	25.60%	15.03%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BigBear.ai	$158.24 million	16.69	-$295.55 million	($1.44)	-4.20
ExlService	$2.03 billion	3.10	$198.30 million	$1.47	26.92

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for BigBear.ai and ExlService, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BigBear.ai	1	2	2	0	2.20
ExlService	0	1	4	0	2.80

BigBear.ai currently has a consensus target price of $6.33, indicating a potential upside of 4.68%. ExlService has a consensus target price of $54.50, indicating a potential upside of 37.73%. Given ExlService’s stronger consensus rating and higher probable upside, analysts clearly believe ExlService is more favorable than BigBear.ai.

Summary

ExlService beats BigBear.ai on 12 of the 14 factors compared between the two stocks.

About BigBear.ai

BigBear.ai Holdings, Inc. provides artificial intelligence-powered decision intelligence solutions. It offers national security, supply chain management, and digital identity and biometrics solutions. The company also provides data ingestion, data enrichment, data processing, artificial intelligence, machine learning, predictive analytics, and predictive visualization solutions and services. It serves nation defense and intelligence agencies, border protection, transportation security, manufacturing, distribution and logistics, travel, entertainment, and tourism sectors. The company is headquartered in Columbia, Maryland.

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.