ExlService (NASDAQ:EXLS – Get Free Report) and BGSF (NYSE:BGSF – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Volatility & Risk
ExlService has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, BGSF has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.
Earnings and Valuation
This table compares ExlService and BGSF”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ExlService | $2.09 billion | 3.12 | $251.02 million | $1.59 | 26.99 |
| BGSF | $93.31 million | 0.47 | -$11.43 million | ($0.74) | -5.51 |
ExlService has higher revenue and earnings than BGSF. BGSF 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 ExlService and BGSF, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ExlService | 0 | 1 | 6 | 0 | 2.86 |
| BGSF | 1 | 0 | 0 | 0 | 1.00 |
ExlService currently has a consensus target price of $44.50, indicating a potential upside of 3.71%. Given ExlService’s stronger consensus rating and higher probable upside, equities research analysts plainly believe ExlService is more favorable than BGSF.
Insider and Institutional Ownership
92.9% of ExlService shares are owned by institutional investors. Comparatively, 37.2% of BGSF shares are owned by institutional investors. 3.7% of ExlService shares are owned by company insiders. Comparatively, 7.1% of BGSF shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares ExlService and BGSF’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ExlService | 11.17% | 30.61% | 15.66% |
| BGSF | -8.99% | -13.69% | -10.60% |
Summary
ExlService beats BGSF on 13 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 BGSF
BGSF, Inc., together with its subsidiaries, provides consulting, managed services, and professional workforce solutions in the United States. It operates in two segments, Property Management and Professional. The Property Management segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, management services, and other IT workforce solutions. This segment also offers finance, accounting, legal, human resource, and related support personnel. It serves its products to fortune 500 companies, and medium and small companies, as well as consulting companies. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.
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