ExlService Holdings Inc (EXLS)vsInternational Business Machines (IBM)
EXLS
ExlService Holdings Inc
$35.26
+1.85%
TECHNOLOGY · Cap: $5.55B
IBM
International Business Machines
$243.29
+3.96%
TECHNOLOGY · Cap: $229.21B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 2988% more annual revenue ($69.09B vs $2.24B). IBM leads profitability with a 15.5% profit margin vs 11.2%. EXLS appears more attractively valued with a PEG of 0.97. EXLS earns a higher WallStSmart Score of 63/100 (C+).
EXLS
Buy63
out of 100
Grade: C+
IBM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.8%
Fair Value
$98.20
Current Price
$35.26
$62.94 discount
Margin of Safety
-84.8%
Fair Value
$131.65
Current Price
$243.29
$111.64 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 32 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
15.6% revenue growth
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Generating 2.4B in free cash flow
Areas to Watch
No major concerns identified
Expensive relative to growth rate
1.1% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : EXLS
The strongest argument for EXLS centers on Return on Equity, Altman Z-Score, PEG Ratio. Revenue growth of 15.6% demonstrates continued momentum. PEG of 0.97 suggests the stock is reasonably priced for its growth.
Bull Case : IBM
The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.5% and operating margin at 16.6%.
Bear Case : EXLS
No major red flags identified for EXLS, but monitor valuation.
Bear Case : IBM
The primary concerns for IBM are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.89 is elevated, increasing financial risk.
Key Dynamics to Monitor
EXLS profiles as a growth stock while IBM is a value play — different risk/reward profiles.
EXLS carries more volatility with a beta of 0.81 — expect wider price swings.
EXLS is growing revenue faster at 15.6% — sustainability is the question.
IBM generates stronger free cash flow (2.4B), providing more financial flexibility.
Bottom Line
EXLS scores higher overall (63/100 vs 54/100) and 15.6% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
ExlService Holdings Inc
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
ExlService Holdings, Inc. provides operations management and analysis services in the United States, the United Kingdom, and internationally. The company is headquartered in New York, New York.
International Business Machines
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.
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