Head-To-Head Survey: ExlService (EXLS) & Acacia Research (ACTG)

ExlService (NASDAQ: EXLS) and Acacia Research (NASDAQ:ACTG) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

92.1% of ExlService shares are owned by institutional investors. Comparatively, 67.1% of Acacia Research shares are owned by institutional investors. 5.8% of ExlService shares are owned by company insiders. Comparatively, 2.8% of Acacia Research shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

ExlService has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Acacia Research has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
ExlService 10.96% 14.38% 11.15%
Acacia Research 145.12% 50.75% 46.80%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ExlService and Acacia Research, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ExlService 1 4 6 0 2.45
Acacia Research 1 0 1 0 2.00

ExlService currently has a consensus price target of $61.82, suggesting a potential downside of 0.36%. Acacia Research has a consensus price target of $6.50, suggesting a potential upside of 73.33%. Given Acacia Research’s higher probable upside, analysts plainly believe Acacia Research is more favorable than ExlService.

Earnings & Valuation

This table compares ExlService and Acacia Research’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ExlService $685.99 million 3.07 $61.73 million $2.11 29.40
Acacia Research $152.70 million 1.24 -$54.06 million $2.40 1.56

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

Summary

ExlService beats Acacia Research on 9 of the 14 factors compared between the two stocks.

About ExlService

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.

About Acacia Research

Acacia Research Corporation, through its subsidiaries, invests in, licenses and enforces patented technologies. The Company’s operating subsidiaries partner with inventors and patent owners, applying their legal and technology expertise to patent assets to unlock the financial value in their patented inventions. The Company’s operating subsidiaries assist patent owners with the prosecution and development of their patent portfolios, the protection of their patented inventions from unauthorized use, the generation of licensing revenue from users of their patented technologies and, where necessary, with the enforcement against unauthorized users of their patented technologies through the filing of patent infringement litigation. The Company’s operating subsidiaries own or control the rights to multiple patent portfolios, which include the United States patents and certain foreign counterparts, covering technologies used in a range of industries.

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