Contrasting Exela Technologies (NASDAQ:XELA) and Sparta Commercial Services (OTCMKTS:SRCO)

Exela Technologies (NASDAQ:XELAGet Rating) and Sparta Commercial Services (OTCMKTS:SRCOGet Rating) 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 valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Exela Technologies has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, Sparta Commercial Services has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Valuation and Earnings

This table compares Exela Technologies and Sparta Commercial Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exela Technologies $1.17 billion 0.11 -$142.39 million ($1.58) -0.17
Sparta Commercial Services $260,000.00 8.15 -$2.30 million N/A N/A

Sparta Commercial Services has lower revenue, but higher earnings than Exela Technologies.

Institutional and Insider Ownership

7.8% of Exela Technologies shares are held by institutional investors. 5.5% of Exela Technologies shares are held by company insiders. Comparatively, 0.5% of Sparta Commercial Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Exela Technologies and Sparta Commercial Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exela Technologies 0 1 1 0 2.50
Sparta Commercial Services 0 0 0 0 N/A

Exela Technologies presently has a consensus target price of $1.28, indicating a potential upside of 367.03%. Given Exela Technologies’ higher probable upside, analysts plainly believe Exela Technologies is more favorable than Sparta Commercial Services.

Profitability

This table compares Exela Technologies and Sparta Commercial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exela Technologies -12.20% N/A -13.88%
Sparta Commercial Services -2,012.23% -2.01% -690.34%

Summary

Exela Technologies beats Sparta Commercial Services on 9 of the 11 factors compared between the two stocks.

Exela Technologies Company Profile (Get Rating)

Exela Technologies, Inc. (Exela), formerly Quinpario Acquisition Corp. 2, is engaged in providing information and transaction processing solutions. The Company’s segments include Information and Transaction Processing Solutions (ITPS), Healthcare Solutions (HS) and Legal & Loss Prevention Services (LLPS). ITPS provides industry solutions for banking and financial services, including lending solutions for mortgages, banking solutions for clearing, anti-money laundering, sanctions, cross-border settlement; property and casualty insurance solutions for enrollments, and communications. The HS segment offerings include integrated accounts payable and accounts receivable, and information management for both the healthcare payer and provider markets. The LLPS segment solutions include processing of legal claims for class action and mass action settlement administrations, involving project management support, notification and collection, analysis, and distribution of settlement funds.

Sparta Commercial Services Company Profile (Get Rating)

Sparta Commercial Services, Inc., a technology company, develops, markets, and manages business websites and mobile applications for smartphones and tablets under the iMobileApp name. It offers mobile applications for agriculture dealerships, racetracks, private clubs, country clubs, restaurants, and grocery stores. The company also owns and manages websites, which sell on-demand motorcycle, recreational vehicle, power-sport vehicle, and truck title history reports for consumers, retail dealers, auction houses, insurance companies, and banks/finance companies; and designs, launches, maintains, and hosts websites for businesses. In addition, it offers an equipment-leasing product for local and state agencies that helps to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment. Further, the company provides a range of hemp-derived cannabinol products through newworldhealthcbd.com. The company was incorporated in 1980 and is based in New York, New York.

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