Contrasting Endava (NYSE:DAVA) & ExlService (NASDAQ:EXLS)

Endava (NYSE:DAVAGet Free Report) and ExlService (NASDAQ:EXLSGet Free Report) 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, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endava $999.23 million 0.24 $27.45 million ($0.11) -38.72
ExlService $2.09 billion 2.28 $251.02 million $1.54 19.73

ExlService has higher revenue and earnings than Endava. Endava 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 summary of recent ratings and price targets for Endava and ExlService, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endava 1 5 4 0 2.30
ExlService 0 1 4 0 2.80

Endava presently has a consensus price target of $14.14, suggesting a potential upside of 232.07%. ExlService has a consensus price target of $43.60, suggesting a potential upside of 43.52%. Given Endava’s higher probable upside, research analysts plainly believe Endava is more favorable than ExlService.

Profitability

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

Net Margins Return on Equity Return on Assets
Endava -0.51% 5.16% 3.23%
ExlService 12.02% 26.66% 15.39%

Risk & Volatility

Endava has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, ExlService has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Insider & Institutional Ownership

62.2% of Endava shares are held by institutional investors. Comparatively, 92.9% of ExlService shares are held by institutional investors. 18.8% of Endava shares are held by company insiders. Comparatively, 4.0% of ExlService shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

ExlService beats Endava on 10 of the 13 factors compared between the two stocks.

About Endava

(Get Free Report)

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. The company also provides automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, telemetry and monitoring, organizational optimization, and transaction advisory services. Endava plc was founded in 2000 and is headquartered in London, the United Kingdom.

About ExlService

(Get Free Report)

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.

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