Wix.com (NASDAQ:WIX) vs. Cognizant Technology Solutions (NASDAQ:CTSH) Head to Head Analysis

Wix.com (NASDAQ:WIX) and Cognizant Technology Solutions (NASDAQ:CTSH) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Profitability

This table compares Wix.com and Cognizant Technology Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wix.com	8.90%	-136.43%	10.36%
Cognizant Technology Solutions	11.89%	16.77%	12.34%

Analyst Recommendations

This is a summary of recent recommendations for Wix.com and Cognizant Technology Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wix.com	0	2	17	3	3.05
Cognizant Technology Solutions	0	10	5	0	2.33

Wix.com currently has a consensus price target of $216.16, indicating a potential upside of 19.12%. Cognizant Technology Solutions has a consensus price target of $86.79, indicating a potential upside of 26.95%. Given Cognizant Technology Solutions’ higher possible upside, analysts clearly believe Cognizant Technology Solutions is more favorable than Wix.com.

Risk and Volatility

Wix.com has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Institutional and Insider Ownership

81.5% of Wix.com shares are owned by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are owned by institutional investors. 6.2% of Wix.com shares are owned by insiders. Comparatively, 0.3% of Cognizant Technology Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Wix.com and Cognizant Technology Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wix.com	$1.76 billion	5.78	$138.32 million	$2.81	64.58
Cognizant Technology Solutions	$19.74 billion	1.69	$2.24 billion	$4.92	13.89

Cognizant Technology Solutions has higher revenue and earnings than Wix.com. Cognizant Technology Solutions is trading at a lower price-to-earnings ratio than Wix.com, indicating that it is currently the more affordable of the two stocks.

Summary

Cognizant Technology Solutions beats Wix.com on 8 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 Cognizant Technology Solutions

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology. The company provides customer experience, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It offers solution to manufacturers, automakers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, business process improvement, technology modernization, and the creation of unified and compelling user experience services to communications, media and entertainment, education, and information services and technology companies. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey.