Datasea (NASDAQ:DTSS – Get Free Report) and Wix.com (NASDAQ:WIX – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares Datasea and Wix.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Datasea | -18.24% | -418.18% | -176.10% |
| Wix.com | 8.16% | -80.80% | 8.85% |
Insider and Institutional Ownership
82.1% of Datasea shares are held by institutional investors. Comparatively, 81.5% of Wix.com shares are held by institutional investors. 50.7% of Datasea shares are held by insiders. Comparatively, 6.2% of Wix.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Datasea | $23.98 million | 0.62 | -$11.38 million | N/A | N/A |
| Wix.com | $1.76 billion | 4.44 | $138.32 million | $2.51 | 55.53 |
Wix.com has higher revenue and earnings than Datasea.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Datasea and Wix.com, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Datasea | 0 | 0 | 0 | 0 | 0.00 |
| Wix.com | 0 | 2 | 17 | 3 | 3.05 |
Wix.com has a consensus target price of $228.95, indicating a potential upside of 64.27%. Given Wix.com’s stronger consensus rating and higher probable upside, analysts plainly believe Wix.com is more favorable than Datasea.
Risk and Volatility
Datasea has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Wix.com has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.
Summary
Wix.com beats Datasea on 11 of the 13 factors compared between the two stocks.
About Datasea
Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.
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.
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