Wix.com (NASDAQ:WIX – Get Free Report) and Stem (NYSE:STEM – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.
Valuation and Earnings
This table compares Wix.com and Stem”s 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 | 5.65 | $138.32 million | $2.81 | 63.14 |
| Stem | $144.58 million | 1.04 | -$854.01 million | ($28.99) | -0.62 |
Risk & Volatility
Wix.com has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Stem has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Wix.com and Stem, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wix.com | 0 | 2 | 17 | 3 | 3.05 |
| Stem | 0 | 7 | 0 | 0 | 2.00 |
Wix.com presently has a consensus target price of $215.37, indicating a potential upside of 21.39%. Stem has a consensus target price of $10.86, indicating a potential downside of 39.15%. Given Wix.com’s stronger consensus rating and higher possible upside, equities analysts plainly believe Wix.com is more favorable than Stem.
Profitability
This table compares Wix.com and Stem’s 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% |
| Stem | -14.04% | N/A | -21.90% |
Institutional & Insider Ownership
81.5% of Wix.com shares are owned by institutional investors. Comparatively, 61.6% of Stem shares are owned by institutional investors. 6.2% of Wix.com shares are owned by company insiders. Comparatively, 10.2% of Stem shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Wix.com beats Stem on 12 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 Stem
Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.
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