Critical Contrast: ExlService (NASDAQ:EXLS) and Serve Robotics (NASDAQ:SERV)

Serve Robotics (NASDAQ:SERV) and ExlService (NASDAQ:EXLS) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Serve Robotics	$1.81 million	524.24	-$39.19 million	($1.49)	-8.55
ExlService	$1.84 billion	3.68	$198.30 million	$1.47	29.01

ExlService has higher revenue and earnings than Serve Robotics. Serve Robotics 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 Serve Robotics and ExlService’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Serve Robotics	-4,121.58%	-38.52%	-36.89%
ExlService	11.91%	25.60%	15.03%

Institutional & Insider Ownership

92.9% of ExlService shares are held by institutional investors. 5.5% of Serve Robotics shares are held by company insiders. Comparatively, 4.0% of ExlService shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Serve Robotics and ExlService, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Serve Robotics	1	0	5	2	3.00
ExlService	0	1	4	0	2.80

Serve Robotics presently has a consensus target price of $18.80, indicating a potential upside of 47.57%. ExlService has a consensus target price of $53.00, indicating a potential upside of 24.30%. Given Serve Robotics’ stronger consensus rating and higher possible upside, research analysts plainly believe Serve Robotics is more favorable than ExlService.

Risk and Volatility

Serve Robotics has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, ExlService has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Summary

ExlService beats Serve Robotics on 9 of the 15 factors compared between the two stocks.

About Serve Robotics

Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc. in July 2023. Serve Robotics Inc. was founded in 2017 and is based in Redwood City, California.

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.