Critical Analysis: Ucommune International (NASDAQ:UK) versus ExlService (NASDAQ:EXLS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ExlService	10.61%	23.23%	13.38%
Ucommune International	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ExlService and Ucommune International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ExlService	0	1	6	0	2.86
Ucommune International	0	0	0	0	0.00

ExlService currently has a consensus target price of $42.86, indicating a potential downside of 6.69%. Given ExlService’s stronger consensus rating and higher probable upside, analysts clearly believe ExlService is more favorable than Ucommune International.

Valuation and Earnings

This table compares ExlService and Ucommune International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ExlService	$1.63 billion	4.53	$184.56 million	$1.14	40.29
Ucommune International	$64.76 million	0.01	-$690,000.00	N/A	N/A

ExlService has higher revenue and earnings than Ucommune International.

Volatility and Risk

ExlService has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Ucommune International has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Institutional & Insider Ownership

92.9% of ExlService shares are owned by institutional investors. Comparatively, 36.9% of Ucommune International shares are owned by institutional investors. 4.2% of ExlService shares are owned by insiders. Comparatively, 14.2% of Ucommune International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

ExlService beats Ucommune International on 11 of the 12 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 Ucommune International

Ucommune International Ltd manages and provides agile office spaces in China. It operates self-operated and asset-light models. The company also provides individual services, such as catering, fitness, healthcare, training, and entertainment; general corporate services, such as corporate secretary, human resources, legal, finance, IT support, and tax services; incubation and corporate venturing services; design and build services; advertising and branding services; and related services. It serves individuals and enterprises. The company operates under the Ucommune brand. Ucommune International Ltd was founded in 2015 and is based in Beijing, the People's Republic of China.