Wix.com (NASDAQ:WIX) and The Competition Financial Analysis

Wix.com (NASDAQ: WIX) is one of 187 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its rivals? We will compare Wix.com to similar businesses based on the strength of its valuation, profitability, earnings, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current ratings for Wix.com and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wix.com 0 6 9 0 2.60
Wix.com Competitors 731 4677 7444 169 2.54

Wix.com currently has a consensus target price of $77.46, suggesting a potential upside of 44.25%. As a group, “IT Services & Consulting” companies have a potential upside of 2.75%. Given Wix.com’s stronger consensus rating and higher probable upside, equities analysts plainly believe Wix.com is more favorable than its rivals.

Risk & Volatility

Wix.com has a beta of 2.25, indicating that its stock price is 125% more volatile than the S&P 500. Comparatively, Wix.com’s rivals have a beta of 1.14, indicating that their average stock price is 14% more volatile than the S&P 500.

Earnings and Valuation

This table compares Wix.com and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Wix.com $290.10 million -$46.89 million -42.28
Wix.com Competitors $2.79 billion $289.83 million 338.06

Wix.com’s rivals have higher revenue and earnings than Wix.com. Wix.com is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

79.2% of Wix.com shares are held by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 16.5% of shares of all “IT Services & Consulting” companies are held by company 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 its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wix.com -14.27% -33,346.88% -19.15%
Wix.com Competitors -20.17% -269.30% -4.60%

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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