Head to Head Contrast: Wix.com (NASDAQ:WIX) versus Genpact (NYSE:G)

Wix.com (NASDAQ:WIX) and Genpact (NYSE:G) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Risk and Volatility

Wix.com has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Genpact has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Insider and Institutional Ownership

81.5% of Wix.com shares are owned by institutional investors. Comparatively, 96.0% of Genpact shares are owned by institutional investors. 6.2% of Wix.com shares are owned by insiders. Comparatively, 1.6% of Genpact shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wix.com	-1.97%	-33.28%	2.84%
Genpact	11.04%	22.70%	10.42%

Earnings and Valuation

This table compares Wix.com and Genpact”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wix.com	$1.99 billion	1.64	$50.65 million	($0.78)	-71.87
Genpact	$5.08 billion	1.10	$552.49 million	$3.26	10.12

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Wix.com and Genpact, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wix.com	2	8	11	1	2.50
Genpact	0	7	1	0	2.13

Wix.com currently has a consensus target price of $100.90, indicating a potential upside of 79.99%. Genpact has a consensus target price of $43.29, indicating a potential upside of 31.26%. Given Wix.com’s stronger consensus rating and higher possible upside, research analysts plainly believe Wix.com is more favorable than Genpact.

Summary

Genpact beats Wix.com on 8 of the 15 factors compared between the two stocks.

About Wix.com

Wix.com Ltd., together with its subsidiaries, operates as a cloud-based web development platform for registered users and creators worldwide. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; and Wix ADI that enables users to have the freedom of customization that the classic editor offers. It also provides Wix Logo Maker that generates a logo, including through the use of artificial intelligence; Wix Answers to support users; and Payments by Wix, a payment platform, which helps its users receive payments from their customers through their Wix Website. In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online. Further, it provides a range of complementary services, including Wix App Market, a marketplace that offers its registered users various free and paid web applications for building, growing, and managing their businesses; Wix marketplace that brings users seeking help in creating and managing a website together with Web experts; and Wix owner App, a native mobile application, which enables users to manage their Websites and Wix operating systems. The company was formerly known as Wixpress Ltd. The company was incorporated in 2006 and is headquartered in Tel Aviv, Israel.

About Genpact

Genpact Limited provides business process outsourcing and information technology services in India, rest of Asia, North and Latin America, and Europe. It operates through three segments: Financial services; Consumer and Healthcare; and High Tech and Manufacturing. The Financial Services segment offers retail customer onboarding, customer service, collections, card servicing operations, loan and payment operations, commercial loan, equipment and auto loan, mortgage origination, compliance services, reporting and monitoring, and wealth management operations support; financial crime and risk management services; and underwriting support, new business processing, policy administration, claims management, catastrophe modeling and actuarial services, as well as property and casualty claims. The Consumer and Healthcare segment provides demand generation, sensing and planning, supply chain planning and management, pricing and trade promotion management, deduction recovery management, order management, and digital commerce; and end-to-end claim lifecycle management, from claims processing and adjudication to claims recovery and payment integrity, revenue cycle management, health equity analytics, and care services. The High Tech and Manufacturing segment offers industry-specific solutions for trust and safety, advertising sales support, customer and user experience, and customer care support; and direct and indirect procurement, logistics, field, aftermarket support, and engineering services. It also provides digital operation services; data-tech-Al services; finance and accounting services, such as accounts payable, invoice-to-cash, record to report, financial planning and analysis, and enterprise risk and compliance; CFO advisory services; supply chain, and sourcing and procurement services; sales and commercial, and marketing and experience services; and environmental, social and governance services. The company was founded in 1997 and is based in Hamilton, Bermuda.