Contrasting Wipro (NYSE:WIT) & TaskUs (NASDAQ:TASK)

TaskUs (NASDAQ:TASK) and Wipro (NYSE:WIT) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TaskUs	5.29%	18.25%	9.53%
Wipro	15.07%	16.07%	10.47%

Insider & Institutional Ownership

44.6% of TaskUs shares are held by institutional investors. Comparatively, 2.4% of Wipro shares are held by institutional investors. 30.6% of TaskUs shares are held by company insiders. Comparatively, 1.0% of Wipro shares are held by company 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 TaskUs and Wipro”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TaskUs	$994.98 million	1.52	$45.87 million	$0.61	27.98
Wipro	$10.43 billion	3.01	$1.54 billion	$0.15	20.00

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

Risk & Volatility

TaskUs has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500. Comparatively, Wipro has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for TaskUs and Wipro, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TaskUs	0	5	3	0	2.38
Wipro	2	3	0	0	1.60

TaskUs presently has a consensus price target of $17.67, suggesting a potential upside of 3.50%. Given TaskUs’ stronger consensus rating and higher probable upside, research analysts plainly believe TaskUs is more favorable than Wipro.

Summary

TaskUs beats Wipro on 9 of the 14 factors compared between the two stocks.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.