Wix.com (NASDAQ:WIX – Get Free Report) and Pinterest (NYSE:PINS – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Profitability
This table compares Wix.com and Pinterest’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wix.com | 4.44% | -49.05% | 4.78% |
| 5.75% | 6.94% | 5.93% |
Risk & Volatility
Wix.com has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Pinterest has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wix.com | $1.65 billion | 5.32 | $33.14 million | $1.14 | 134.84 |
| $3.34 billion | 6.00 | -$35.61 million | $0.21 | 139.57 |
Wix.com has higher earnings, but lower revenue than Pinterest. Wix.com is trading at a lower price-to-earnings ratio than Pinterest, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Wix.com and Pinterest, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wix.com | 0 | 4 | 13 | 1 | 2.83 |
| 0 | 8 | 22 | 0 | 2.73 |
Wix.com presently has a consensus target price of $189.19, suggesting a potential upside of 23.07%. Pinterest has a consensus target price of $42.50, suggesting a potential upside of 45.01%. Given Pinterest’s higher probable upside, analysts clearly believe Pinterest is more favorable than Wix.com.
Institutional & Insider Ownership
81.5% of Wix.com shares are owned by institutional investors. Comparatively, 88.8% of Pinterest shares are owned by institutional investors. 6.2% of Wix.com shares are owned by company insiders. Comparatively, 7.1% of Pinterest shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Pinterest beats Wix.com on 10 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 Pinterest
Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
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