Critical Analysis: Exela Technologies (XELA) & Its Peers

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Exela Technologies (NASDAQ: XELA) is one of 120 public companies in the “Business services, not elsewhere classified” industry, but how does it contrast to its peers? We will compare Exela Technologies to related businesses based on the strength of its earnings, analyst recommendations, dividends, profitability, institutional ownership, valuation and risk.

Institutional & Insider Ownership

37.1% of Exela Technologies shares are owned by institutional investors. Comparatively, 64.3% of shares of all “Business services, not elsewhere classified” companies are owned by institutional investors. 52.2% of Exela Technologies shares are owned by insiders. Comparatively, 14.2% of shares of all “Business services, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Exela Technologies has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Exela Technologies’ peers have a beta of 0.68, suggesting that their average stock price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Exela Technologies and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exela Technologies 0 0 1 0 3.00
Exela Technologies Competitors 771 3780 7233 308 2.59

Exela Technologies presently has a consensus target price of $9.00, indicating a potential upside of 89.47%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 4.63%. Given Exela Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Exela Technologies is more favorable than its peers.

Profitability

This table compares Exela Technologies and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exela Technologies N/A -31,672.80% -9.32%
Exela Technologies Competitors 4.96% 3.87% 0.77%

Valuation and Earnings

This table compares Exela Technologies and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Exela Technologies $1.15 billion -$204.28 million -2.86
Exela Technologies Competitors $2.57 billion $356.09 million 11.59

Exela Technologies’ peers have higher revenue and earnings than Exela Technologies. Exela Technologies is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Exela Technologies peers beat Exela Technologies on 9 of the 13 factors compared.

Exela Technologies Company Profile

Exela Technologies, Inc. (Exela), formerly Quinpario Acquisition Corp. 2, is engaged in providing information and transaction processing solutions. The Company’s segments include Information and Transaction Processing Solutions (ITPS), Healthcare Solutions (HS) and Legal & Loss Prevention Services (LLPS). ITPS provides industry solutions for banking and financial services, including lending solutions for mortgages, banking solutions for clearing, anti-money laundering, sanctions, cross-border settlement; property and casualty insurance solutions for enrollments, and communications. The HS segment offerings include integrated accounts payable and accounts receivable, and information management for both the healthcare payer and provider markets. The LLPS segment solutions include processing of legal claims for class action and mass action settlement administrations, involving project management support, notification and collection, analysis, and distribution of settlement funds.

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