Head-To-Head Contrast: Vantiv (VNTV) versus ExlService (EXLS)

Vantiv (NYSE: VNTV) and ExlService (NASDAQ:EXLS) are both mid-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Vantiv and ExlService, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vantiv 0 9 19 0 2.68
ExlService 1 4 6 0 2.45

Vantiv currently has a consensus target price of $76.44, suggesting a potential upside of 6.36%. ExlService has a consensus target price of $61.82, suggesting a potential upside of 2.04%. Given Vantiv’s stronger consensus rating and higher possible upside, equities analysts plainly believe Vantiv is more favorable than ExlService.

Insider and Institutional Ownership

95.7% of ExlService shares are owned by institutional investors. 1.3% of Vantiv shares are owned by insiders. Comparatively, 5.8% of ExlService shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Vantiv has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, ExlService has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Valuation & Earnings

This table compares Vantiv and ExlService’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vantiv $3.58 billion 3.57 $213.20 million $1.45 49.57
ExlService $685.99 million 3.00 $61.73 million $2.11 28.71

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

Profitability

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

Net Margins Return on Equity Return on Assets
Vantiv 6.07% 41.19% 7.92%
ExlService 9.94% 14.81% 11.40%

Vantiv Company Profile

Vantiv, Inc. is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services that utilize the Company’s Jeanie personal identification number (PIN) debit payment network.

ExlService Company Profile

ExlService Holdings, Inc. is an operations management and analytics company. The Company segments include Insurance; Healthcare; Travel, Transportation and Logistics; Finance and Accounting (F&A); Analytics, and All Other. The Insurance operating segment serves property and casualty insurance, life insurance, disability insurance, annuity and retirement services companies. The Healthcare operating segment serves healthcare payers and providers. The Travel, Transportation and Logistics operating segment primarily serves clients in the travel, transport and logistics industries. The F&A operating segment provides finance and accounting business process management (BPM) services across an array of F&A processes. The Analytics services focus on driving business outcomes for its customers by generating data-driven insights across all parts of its customers’ businesses. The All Other segment includes banking and financial services, utilities and consulting operating segments.

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