Applied Digital Corporation (APLD) vs ExlService Holdings, Inc. (EXLS)

Applied Digital Corporation and ExlService Holdings, Inc. are both Information Technology Services companies. Applied Digital Corporation is the larger, with a market value of $8.0B against $5.4B — 1.5× the size. Applied Digital Corporation has negative trailing earnings, so its P/E is not meaningful; ExlService Holdings, Inc. trades at 21.9×. Applied Digital Corporation grew revenue faster over the last twelve months: 167.5% against 13.6%. ExlService Holdings, Inc. has the higher net margin (11.2% vs −40.9%) and the higher return on invested capital (21.9% vs −5.40%). Across the 18 metrics below, ExlService Holdings, Inc. leads on 14 and Applied Digital Corporation on 4.

Valuation

Metric APLD EXLS Information Technology Services median
P/E n/m 21.86 14.63
P/S 11.82 2.37 1.13
P/B 4.19 6.12 2.10
Price to free cash flow n/m 19.25 10.11
EV/EBITDA n/m 13.82 8.56
EV/Sales 13.48 2.59 1.20
Earnings yield (3.39%) 4.58% 4.56%
Free cash flow yield (38.43%) 5.19% 4.37%

Profitability

Metric APLD EXLS Information Technology Services median
Gross margin 25.79% 38.51% 31.05%
Operating margin (38.68%) 14.90% 3.30%
Net margin (40.94%) 11.17% 2.09%
Free cash flow margin (454.12%) 12.31% 0.00%
Return on equity (22.52%) 25.94% 4.12%
Return on assets (4.24%) 14.47% 0.61%
Return on invested capital (5.40%) 21.91% 0.57%

Growth

Metric APLD EXLS Information Technology Services median
Revenue growth (TTM) 167.45% 13.63% 7.12%
EPS growth (last fiscal year) 21.55% 27.27% —
Revenue growth, 5-year CAGR — 16.85% 7.71%
Net income growth, 5-year CAGR 0.00% 22.91% 0.00%

Health

Metric APLD EXLS Information Technology Services median
Debt to equity 2.89 0.44 0.45
Current ratio 4.01 1.24 1.66
Net debt to EBITDA (6.23) (0.11) 0.44

Dividend

Metric APLD EXLS Information Technology Services median
Dividend yield — — 1.21%
Payout ratio 0.00 0.00 0.00

Size

Metric APLD EXLS Information Technology Services median
Market cap 8.03b 5.37b 1.36b

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