Financial Survey: MOGU (NYSE:MOGU) and ExlService (NASDAQ:EXLS)

MOGU (NYSE:MOGU) and ExlService (NASDAQ:EXLS) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Risk & Volatility

MOGU has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, ExlService has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MOGU	N/A	N/A	N/A
ExlService	10.45%	22.92%	13.47%

Analyst Ratings

This is a summary of recent ratings and price targets for MOGU and ExlService, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MOGU	0	0	0	0	N/A
ExlService	0	0	6	0	3.00

ExlService has a consensus price target of $39.67, suggesting a potential upside of 3.98%. Given ExlService’s higher probable upside, analysts plainly believe ExlService is more favorable than MOGU.

Valuation and Earnings

This table compares MOGU and ExlService”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MOGU	$160.34 million	0.13	-$8.21 million	N/A	N/A
ExlService	$1.71 billion	3.74	$184.56 million	$1.08	35.32

ExlService has higher revenue and earnings than MOGU.

Insider & Institutional Ownership

19.1% of MOGU shares are held by institutional investors. Comparatively, 92.9% of ExlService shares are held by institutional investors. 19.8% of MOGU shares are held by company insiders. Comparatively, 3.8% of ExlService shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

ExlService beats MOGU on 10 of the 11 factors compared between the two stocks.

About MOGU

MOGU Inc., through its subsidiaries, engages in the online fashion and lifestyle business in the People's Republic of China. The company operates an online platform that primarily offers a range of fashion apparel and other products, including beauty products and accessories provided by third party merchants, as well as personal care, food, and medical beauty products. It also provides online marketing, commission, financing, technology, and other related services to merchants, brand partners/owners, and users; and technology services to insurance companies. The company offers its products through mobile apps, including flagship Mogujie app, mini programs on Weixin, and Weixin pay; websites comprising Mogu.com, Mogujie.com and Meilishuo.com. The company was formerly known as Meili Inc. and changed its name to MOGU Inc. in November 2018. The company was incorporated in 2011 and is headquartered in Hangzhou, the People's Republic of 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.