Financial Analysis: Smart Powerr (NASDAQ:CREG) versus ExlService (NASDAQ:EXLS)

Smart Powerr (NASDAQ:CREG) and ExlService (NASDAQ:EXLS) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Smart Powerr and ExlService, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smart Powerr	0	0	0	0	N/A
ExlService	0	1	6	0	2.86

ExlService has a consensus target price of $39.71, suggesting a potential upside of 0.59%. Given ExlService’s higher probable upside, analysts clearly believe ExlService is more favorable than Smart Powerr.

Earnings and Valuation

This table compares Smart Powerr and ExlService”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smart Powerr	N/A	N/A	-$750,000.00	($0.11)	-6.64
ExlService	$1.71 billion	3.87	$184.56 million	$1.08	36.56

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smart Powerr	N/A	-1.01%	-0.81%
ExlService	10.45%	22.92%	13.47%

Institutional and Insider Ownership

0.2% of Smart Powerr shares are held by institutional investors. Comparatively, 92.9% of ExlService shares are held by institutional investors. 14.5% of Smart Powerr shares are held by company insiders. Comparatively, 3.8% of ExlService shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Smart Powerr has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, ExlService has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Summary

ExlService beats Smart Powerr on 11 of the 12 factors compared between the two stocks.

About Smart Powerr

Smart Powerr Corp. engages in the waste energy recycling business in China. The company provides energy saving and recovery facilities for various energy intensive industries; waste energy recycling systems for use in nonferrous metal plants; and clean-technology and energy-efficient solutions to reduce air pollution and energy shortage problems. It also designs, finances, constructs, and installs the waste energy recycling project to mid to large-size enterprises involved in high energy-consuming businesses; and provides project investment, investment management, economic information consulting, technical, financial leasing, and financial leasing transactions and consulting services; purchases, repairs, and disposes financial leasing assets; sells and leases energy saving systems and equipment. In addition, the company offers waste gas-to-energy solutions comprising the waste gas power generation system that utilizes flammable waste gas to generate electricity; and flammable waste gases emitted from industrial production processes, such as blast furnace gas, and coke furnace gas, oil or gas to power gas-fired generators, as well as uses the waste heat generated in industrial production to make steam to generate electricity through a steam turbine. Further, it markets its projects to the industrial manufacturers to utilize energy recovery projects in their manufacturing processes, including steel, cement, nonferrous metal, coal, and petrochemical industries. The company was formerly known as China Recycling Energy Corporation and changed its name to Smart Powerr Corp. in March 2022. Smart Powerr Corp. was incorporated in 1980 and is headquartered in Xi'an, China.

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.