Financial Analysis: Nutanix (NASDAQ:NTNX) and ExlService (NASDAQ:EXLS)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nutanix	0	9	10	1	2.60
ExlService	0	1	4	0	2.80

Nutanix currently has a consensus target price of $60.87, suggesting a potential upside of 55.47%. ExlService has a consensus target price of $43.60, suggesting a potential upside of 42.67%. Given Nutanix’s higher probable upside, equities research analysts plainly believe Nutanix is more favorable than ExlService.

Earnings and Valuation

This table compares Nutanix and ExlService”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nutanix	$2.54 billion	4.09	$188.37 million	$0.92	42.55
ExlService	$2.09 billion	2.29	$251.02 million	$1.54	19.84

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

Risk & Volatility

Nutanix has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, ExlService has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Insider and Institutional Ownership

85.3% of Nutanix shares are held by institutional investors. Comparatively, 92.9% of ExlService shares are held by institutional investors. 2.4% of Nutanix 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 company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nutanix	9.95%	-37.41%	8.37%
ExlService	12.02%	26.66%	15.39%

Summary

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

About Nutanix

Nutanix, Inc. engages in the provision of a cloud platform leveraging web-scale engineering and consumer-grade design. It operates through the following geographic segments: United States, Europe, the Middle East, Africa, Asia Pacific, and Other Americas. The firm also provides software solutions and cloud services to customers’ enterprise infrastructure. The company was founded by Dheeraj Pandey, Ajeet Singh, and Mohit Aron in 2009 and is headquartered in San Jose, CA.

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.