FleetCor Technologies (NYSE:FLT) and ExlService (NASDAQ:EXLS) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Earnings & Valuation

This table compares FleetCor Technologies and ExlService’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FleetCor Technologies $2.65 billion 6.85 $895.07 million $11.26 18.86
ExlService $991.35 million 1.55 $67.66 million $2.43 18.46

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

Profitability

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

Net Margins Return on Equity Return on Assets
FleetCor Technologies 33.79% 27.07% 8.51%
ExlService 6.82% 13.68% 7.62%

Volatility & Risk

FleetCor Technologies has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, ExlService has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership

96.8% of FleetCor Technologies shares are owned by institutional investors. Comparatively, 93.1% of ExlService shares are owned by institutional investors. 5.7% of FleetCor Technologies shares are owned by insiders. Comparatively, 3.6% of ExlService shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for FleetCor Technologies and ExlService, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FleetCor Technologies 0 12 7 0 2.37
ExlService 1 4 3 0 2.25

FleetCor Technologies currently has a consensus target price of $290.89, indicating a potential upside of 37.00%. ExlService has a consensus target price of $73.29, indicating a potential upside of 63.40%. Given ExlService’s higher possible upside, analysts plainly believe ExlService is more favorable than FleetCor Technologies.

Summary

FleetCor Technologies beats ExlService on 12 of the 14 factors compared between the two stocks.

About FleetCor Technologies

FleetCor Technologies, Inc. provides commercial payment solutions in North America, Latin America, Europe, and Australasia. The company offers fuel payment solutions to businesses and government entities that operate vehicle fleets, as well as to oil and leasing companies, and fuel marketers. Its fuel payment products are in the form of plastic cards, electronic RFID tags, and paper vouchers to purchase fuel, oil, vehicle maintenance supplies and services, and building supplies. The company also provides lodging payment solutions to businesses that have employees who travel overnight for work purposes. In addition, it offers electronic toll and parking payments products to businesses and consumers in the form of RFID tags affixed to vehicles' windshields; and prepaid paper vouchers as a means of payment on toll roads. Further, the company provides corporate payments solutions with vertical-specific applications, which enable its customers to manage and control electronic payments across their enterprise, optimize corporate spending, and offer innovative services that enhance employee efficiency and customer loyalty. Its primary corporate payments products include virtual cards, purchasing cards, travel and entertainment cards, payroll cards, and cross-border payment facilitation. Additionally, it offers gift card product management and processing services, such as card design, production and packaging, delivery and fulfillment, card and account management, transaction processing, promotion development and management, Website design and hosting, program analytics, and card distribution channel management. The company also provides vehicle maintenance, employee benefit payment, and long haul transportation-related services. The company markets its products and services through field sales, telesales, direct marketing, point-of-sale marketing, and the Internet. FleetCor Technologies, Inc. was founded in 1986 and is headquartered in Peachtree Corners, Georgia.

About ExlService

ExlService Holdings, Inc. provides operations management and analytics services in the United States, the United Kingdom, and internationally. The company offers business process management (BPM) services to the insurance industry in the areas of claims processing, subrogation, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business processing, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey, and customer services. It also provides BPM services related to the care management, utilization management, multi-chronic case management, disease management, dual eligible special needs plans, payment integrity, revenue optimization, and customer engagement for the healthcare industry; BPM services related to business processes in corporate and leisure travel, such as reservations, customer service, fulfillment, and finance and accounting; and finance and accounting BPM services, including procure-to-pay, order-to-cash, hire-to-retire, record-to-report, regulatory reporting, financial planning and analysis, audit and assurance, and treasury and tax processes. In addition, the company offers BPM services for banking and financial services industry comprising residential mortgage lending, retail banking and credit cards, commercial banking, and investment management; BPM services related to enhancing operating models, enhancing customer experience, reducing costs, shortening turnaround time, and simplifying compliance for clients; and industry-specific digital transformational services. Further, it provides predictive and prescriptive analytics in the areas of customer acquisition and lifecycle management, risk underwriting and pricing, operational effectiveness, credit and operational risk monitoring and governance, regulatory reporting, and data management. The company was founded in 1999 and is headquartered in New York, New York.

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