Head to Head Analysis: Nuvei (NASDAQ:NVEI) & Exela Technologies (NASDAQ:XELA)

Exela Technologies (NASDAQ:XELA) and Nuvei (NASDAQ:NVEI) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Exela Technologies and Nuvei, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exela Technologies	0	0	0	0	N/A
Nuvei	0	9	8	0	2.47

Nuvei has a consensus price target of $32.21, suggesting a potential downside of 3.95%. Given Nuvei’s higher probable upside, analysts clearly believe Nuvei is more favorable than Exela Technologies.

Volatility and Risk

Exela Technologies has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Nuvei has a beta of 2.53, indicating that its stock price is 153% more volatile than the S&P 500.

Earnings & Valuation

This table compares Exela Technologies and Nuvei”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exela Technologies	$1.06 billion	0.01	-$125.16 million	($8.39)	-0.24
Nuvei	$1.31 billion	3.59	-$7.84 million	($0.04)	-838.50

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

Profitability

This table compares Exela Technologies and Nuvei’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exela Technologies	-4.86%	N/A	-8.07%
Nuvei	-0.87%	6.98%	2.80%

Insider & Institutional Ownership

16.3% of Exela Technologies shares are held by institutional investors. Comparatively, 42.5% of Nuvei shares are held by institutional investors. 0.1% of Exela Technologies shares are held by company insiders. Comparatively, 20.0% of Nuvei shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Nuvei beats Exela Technologies on 12 of the 13 factors compared between the two stocks.

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.

About Nuvei

Nuvei Corporation provides payment technology solutions to merchants and partners in North America, Europe, the Middle East and Africa, Latin America, and the Asia Pacific. The company's platform enables customers to pay and/or accept payments worldwide regardless of the location, device, or preferred payment method. Its solutions comprise a fully integrated payments engine with global processing capabilities, a turnkey solution for frictionless payment experiences, and a broad suite of data-driven business intelligence tools and risk management services. The company markets and sells its products and services through direct and indirect sales, strategic platform integrations, local sales teams, and indirect partners. The company was formerly known as Pivotal Development Corporation Inc. and changed its name to Nuvei Corporation in November 2018. Nuvei Corporation was founded in 2003 and is headquartered in Montreal, Canada.