Manhattan Associates (NASDAQ: MANH) and Wipro (NYSE:WIT) are both mid-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Dividends

Wipro pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Manhattan Associates does not pay a dividend. Wipro pays out 3.6% of its earnings in the form of a dividend.

Volatility and Risk

Manhattan Associates has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Wipro has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Earnings and Valuation

This table compares Manhattan Associates and Wipro’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manhattan Associates $604.56 million 5.98 $124.23 million $1.74 30.14
Wipro $8.49 billion 3.25 $1.31 billion $0.28 20.65

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

Profitability

This table compares Manhattan Associates and Wipro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manhattan Associates 20.38% 74.19% 41.53%
Wipro 15.77% 16.14% 10.57%

Insider and Institutional Ownership

2.4% of Wipro shares are owned by institutional investors. 1.0% of Manhattan Associates shares are owned by company insiders. Comparatively, 1.0% of Wipro shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Manhattan Associates and Wipro, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manhattan Associates 0 2 1 0 2.33
Wipro 3 1 0 0 1.25

Manhattan Associates currently has a consensus target price of $60.00, suggesting a potential upside of 14.42%. Wipro has a consensus target price of $277.00, suggesting a potential upside of 4,776.76%. Given Wipro’s higher possible upside, analysts plainly believe Wipro is more favorable than Manhattan Associates.

Summary

Manhattan Associates beats Wipro on 11 of the 16 factors compared between the two stocks.

About Manhattan Associates

Manhattan Associates, Inc. (Manhattan) is a developer and provider of supply chain commerce solutions. The Company operates through three geographical segments: the Americas, Europe, Middle East and Africa (EMEA), and the Asia Pacific (APAC). It is engaged in developing, selling, deploying, servicing and maintaining software solutions designed to manage supply chains, inventory and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers and other organizations. Its solutions consist of software, services and hardware, which coordinate people, workflows, assets, events and tasks across the functions linked in a supply chain from planning through execution. Its supply chain solutions consist of three components: Distribution Management, Transportation Management and Visibility. Its Omni-Channel Solutions include Omni-Channel Central Solutions and Omni-Channel Local Solutions. Its Inventory solutions include Inventory Optimization and Planning.

About Wipro

Wipro Limited (Wipro) is a global information technology (IT) services provider. It operates through two segments: IT Services and IT Products. The Company’s IT Services business provides a range of IT and IT-enabled services, which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, global infrastructure services, analytics services, business process services, research and development and hardware and software design. The IT Products segment provides a range of third-party IT products, which allows it to offer IT system integration services. Its products include computing, Platforms and Storage, Networking Solutions, Enterprise Information Security, and software products, including databases and operating systems. The Company is a reseller of third-party enterprise products through its direct sales force.

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