ExlService (NASDAQ:EXLS – Get Free Report) and Taboola.com (NASDAQ:TBLA – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Volatility and Risk
ExlService has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
Valuation & Earnings
This table compares ExlService and Taboola.com”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ExlService | $1.84 billion | 3.76 | $198.30 million | $1.44 | 29.69 |
| Taboola.com | $1.77 billion | 0.62 | -$3.76 million | $0.04 | 84.50 |
ExlService has higher revenue and earnings than Taboola.com. ExlService is trading at a lower price-to-earnings ratio than Taboola.com, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
92.9% of ExlService shares are held by institutional investors. Comparatively, 42.9% of Taboola.com shares are held by institutional investors. 4.0% of ExlService shares are held by insiders. Comparatively, 24.7% of Taboola.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations for ExlService and Taboola.com, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ExlService | 0 | 1 | 5 | 0 | 2.83 |
| Taboola.com | 0 | 2 | 4 | 0 | 2.67 |
ExlService presently has a consensus price target of $51.50, indicating a potential upside of 20.44%. Taboola.com has a consensus price target of $4.3750, indicating a potential upside of 29.44%. Given Taboola.com’s higher probable upside, analysts plainly believe Taboola.com is more favorable than ExlService.
Profitability
This table compares ExlService and Taboola.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ExlService | 12.00% | 25.38% | 15.01% |
| Taboola.com | 0.77% | 3.32% | 2.03% |
Summary
ExlService beats Taboola.com on 10 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 Taboola.com
Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.
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