Total System Services (NYSE:TSS) and Exela Technologies (NASDAQ:XELA) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.
Volatility & Risk
Total System Services has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Exela Technologies has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.
77.2% of Total System Services shares are held by institutional investors. Comparatively, 43.7% of Exela Technologies shares are held by institutional investors. 2.0% of Total System Services shares are held by insiders. Comparatively, 53.1% of Exela Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Total System Services and Exela Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Total System Services||0||6||11||0||2.65|
Total System Services currently has a consensus target price of $108.54, indicating a potential downside of 14.36%. Exela Technologies has a consensus target price of $9.33, indicating a potential upside of 376.19%. Given Exela Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Exela Technologies is more favorable than Total System Services.
Earnings & Valuation
This table compares Total System Services and Exela Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Total System Services||$4.03 billion||5.58||$576.66 million||$4.26||29.75|
|Exela Technologies||$1.59 billion||0.19||-$162.52 million||($0.77)||-2.55|
Total System Services has higher revenue and earnings than Exela Technologies. Exela Technologies is trading at a lower price-to-earnings ratio than Total System Services, indicating that it is currently the more affordable of the two stocks.
Total System Services pays an annual dividend of $0.52 per share and has a dividend yield of 0.4%. Exela Technologies does not pay a dividend. Total System Services pays out 12.2% of its earnings in the form of a dividend. Total System Services has raised its dividend for 2 consecutive years.
This table compares Total System Services and Exela Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Total System Services||14.63%||31.25%||10.44%|
Total System Services beats Exela Technologies on 12 of the 17 factors compared between the two stocks.
About Total System Services
Total System Services, Inc. provides payment processing, merchant, and related payment services to financial and nonfinancial institutions worldwide. The company operates through three segments: Issuer Solutions, Merchant Solutions, and Consumer Solutions. It offers general purpose reloadable prepaid and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers and businesses. The company also provides third party processing and related services for credit card issuers, merchant acquirers, independent sales organizations, and financial institutions; and issuer processing services, as well as operates as a prepaid program manager. Total System Services, Inc. was founded in 1982 and is headquartered in Columbus, Georgia.
About Exela Technologies
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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