ARI Network Services (NASDAQ: ARIS) and Wix.com (NASDAQ:WIX) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Insider and Institutional Ownership

36.1% of ARI Network Services shares are held by institutional investors. Comparatively, 75.4% of Wix.com shares are held by institutional investors. 8.7% of ARI Network Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

ARI Network Services has a beta of -1.88, suggesting that its stock price is 288% less volatile than the S&P 500. Comparatively, Wix.com has a beta of 2.42, suggesting that its stock price is 142% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for ARI Network Services and Wix.com, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARI Network Services 1 1 0 0 1.50
Wix.com 0 6 9 0 2.60

Wix.com has a consensus target price of $77.62, indicating a potential upside of 42.81%. Given Wix.com’s stronger consensus rating and higher possible upside, analysts clearly believe Wix.com is more favorable than ARI Network Services.

Valuation and Earnings

This table compares ARI Network Services and Wix.com’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
ARI Network Services N/A N/A N/A $0.14 50.64
Wix.com $290.10 million 8.52 -$46.89 million ($1.24) -43.83

ARI Network Services has higher revenue, but lower earnings than Wix.com. Wix.com is trading at a lower price-to-earnings ratio than ARI Network Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ARI Network Services and Wix.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARI Network Services 11.55% 18.27% 9.56%
Wix.com -13.08% -2,261.14% -19.74%

Summary

Wix.com beats ARI Network Services on 6 of the 11 factors compared between the two stocks.

ARI Network Services Company Profile

ARI Network Services, Inc. (ARI) provides Website, software and data solutions. The Company’s solutions include Lead Generation and eCommerce Websites, eCatalogs, Business Management Software, Digital Marketing Services. It offers a menu of Website add-ons, including a mobile inventory management application, third-party inventory integrations and business management integrations. Its eCatalog solutions offer access to its library of electronic product content through a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) solutions. Its Business Management Software solutions are offered in the automotive tire and wheel aftermarket (ATW) aftermarket under the TCS Technologies, an ARI Company brand name. ARI’s Digital Marketing Services include search engine optimization, e-mail marketing, search engine marketing (PPC), online reputation management and online directory management. The Company’s other solutions include software, professional services and hosting services.

Wix.com Company Profile

Wix.com Ltd. (Wix) is a Web development platform enabling businesses and organizations to take businesses, brands and workflow online. The Company provides solutions that business owners can use to operate various aspects of their business online, such as selling goods, taking reservations, and scheduling and confirming appointments. These applications provide Wix registered users a bespoke front-end for customers visiting their Website, as well as a back-end management dashboard. The Company has developed these software applications for businesses in specific verticals, including retail and online stores, service providers, hotel and property management, music and restaurants. These vertical applications are integrated into the Company’s Website templates or can be installed on any existing Website and set up by the user and without the need to write code.

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