Financial Comparison: ExlService (NASDAQ:EXLS) versus CACI International (NYSE:CACI)

CACI International (NYSE:CACI) and ExlService (NASDAQ:EXLS) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Risk and Volatility

CACI International has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, ExlService has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Valuation and Earnings

This table compares CACI International and ExlService”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CACI International	$9.57 billion	1.44	$535.81 million	$24.15	25.76
ExlService	$2.09 billion	2.56	$251.02 million	$1.59	22.18

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CACI International	5.60%	15.65%	6.45%
ExlService	11.17%	30.61%	15.66%

Analyst Ratings

This is a breakdown of current ratings and target prices for CACI International and ExlService, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CACI International	0	4	8	0	2.67
ExlService	0	1	6	0	2.86

CACI International currently has a consensus price target of $697.55, indicating a potential upside of 12.14%. ExlService has a consensus price target of $44.50, indicating a potential upside of 26.21%. Given ExlService’s stronger consensus rating and higher possible upside, analysts clearly believe ExlService is more favorable than CACI International.

Insider and Institutional Ownership

86.4% of CACI International shares are owned by institutional investors. Comparatively, 92.9% of ExlService shares are owned by institutional investors. 1.1% of CACI International shares are owned by insiders. Comparatively, 3.7% of ExlService shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

ExlService beats CACI International on 9 of the 14 factors compared between the two stocks.

About CACI International

CACI International Inc, through its subsidiaries, engages in the provision of expertise and technology to enterprise and mission customers in support of national security in the intelligence, defense, and federal civilian sectors. The company operates through two segments, Domestic Operations and International Operations. The Domestic Operations segment offers digital solutions by modernizing enterprise and agency-unique applications, enterprise infrastructure, and business processes; C4ISR solutions, including command, control, communications, and computer (C4), as well as intelligence, surveillance, and reconnaissance (ISR) technology and networks; and cyber solutions for cybersecurity, cyberspace, electronic warfare, and signals intelligence operations. This segment also provides space solutions, comprising intelligence fusion, data analytic, and decision support, as well as logistics solutions; engineering services, such as platform integration, modernization and sustainment, system engineering, naval architecture, training and simulation, and logistics engineering; design, implement, protect, and manage secure enterprise IT solutions for federal agencies; and mission support solutions, that include analytic services, as well as scenario-based instruction across the spectrum of intelligence processing, collection, and products. The International Operations segment provides a range of IT services, proprietary data, and software products to the commercial and government customers in the United Kingdom, continental Europe, and internationally. The company was founded in 1962 and is headquartered in Reston, Virginia.

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.