Wix.Com (NASDAQ: WIX) and Actua (NASDAQ:ACTA) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Risk & Volatility
Wix.Com has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500. Comparatively, Actua has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.
79.2% of Wix.Com shares are held by institutional investors. Comparatively, 72.5% of Actua shares are held by institutional investors. 10.2% of Actua shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Wix.Com and Actua’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wix.Com||$290.10 million||9.70||-$46.89 million||($1.27)||-48.74|
|Actua||$109.30 million||4.74||$70.08 million||$2.21||7.17|
Actua has lower revenue, but higher earnings than Wix.Com. Wix.Com is trading at a lower price-to-earnings ratio than Actua, indicating that it is currently the more affordable of the two stocks.
This table compares Wix.Com and Actua’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Wix.Com and Actua, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Wix.Com presently has a consensus target price of $77.21, suggesting a potential upside of 24.74%. Actua has a consensus target price of $17.00, suggesting a potential upside of 7.26%. Given Wix.Com’s stronger consensus rating and higher possible upside, equities analysts plainly believe Wix.Com is more favorable than Actua.
Wix.Com beats Actua on 8 of the 15 factors compared between the two stocks.
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.
Actua Corporation, formerly ICG Group, Inc., is a multi-vertical cloud technology company. The Company operates through two segments, which include the vertical cloud segment and the vertical cloud (venture) segment. The Company’s vertical cloud-based businesses include Bolt Solutions Inc. (Bolt), GovDelivery Holdings, Inc. (GovDelivery) and VelocityEHS Holdings, Inc. (VelocityEHS), which operate in the commercial and personal property and casualty insurance, wealth management, government communications and environmental, health and safety (EH&S) markets, respectively. The vertical cloud (venture) businesses include InstaMed Holdings, Inc. (InstaMed) and Parchment Inc. (Parchment), which operate a cloud-based healthcare payments network and an education credentials technology, respectively.
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