Comparing Wix.com (NASDAQ:WIX) and ExlService (NASDAQ:EXLS)

Wix.com (NASDAQ:WIX) and ExlService (NASDAQ:EXLS) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Wix.com and ExlService, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wix.com	0	3	17	3	3.00
ExlService	0	1	6	0	2.86

Wix.com presently has a consensus target price of $215.37, indicating a potential upside of 41.90%. ExlService has a consensus target price of $51.33, indicating a potential upside of 19.19%. Given Wix.com’s stronger consensus rating and higher possible upside, equities analysts clearly believe Wix.com is more favorable than ExlService.

Insider and Institutional Ownership

81.5% of Wix.com shares are owned by institutional investors. Comparatively, 92.9% of ExlService shares are owned by institutional investors. 6.2% of Wix.com shares are owned by company insiders. Comparatively, 4.0% of ExlService shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Wix.com has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, ExlService has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Earnings and Valuation

This table compares Wix.com and ExlService”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wix.com	$1.76 billion	4.84	$138.32 million	$2.81	54.01
ExlService	$1.97 billion	3.53	$198.30 million	$1.44	29.91

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

Profitability

This table compares Wix.com and ExlService’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%
ExlService	12.00%	25.38%	15.01%

Summary

Wix.com beats ExlService on 9 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 ExlService

ExlService Holdings, Inc. operates as a data analytics, and digital operations and solutions company in the United States and internationally. The company operates through Insurance, Healthcare, Analytics, and Emerging Business segments. It also provides digital operations and solutions and analytics-driven services, such as claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business acquisition, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey, and customer service using digital technology, artificial intelligence, machine learning, and advanced automation; digital customer acquisition services using a software-as-a-service delivery model through LifePRO and LISS platforms; subrogation services; and Subrosource software platform, an end-to-end subrogation platform. In addition, the company offers health care services related to care management, utilization management, disease management, payment integrity, revenue optimization, and customer engagement. Further, it provides financial planning and analysis, management reporting, forecasting and decision support, data management, regulatory reporting and risk, and compliance services; reservations, customer, and fulfilment services; freight billing, collections, claims management, freight audit, freight scheduling, supply chain management, and revenue assurance services; residential mortgage lending, title verification and validation, retail banking and credit cards, trust verification, commercial banking, and investment management; merchandising, pricing, and demand forecasting; and digital operations and solutions. The company offers predictive and prescriptive analytics in the areas of customer acquisition and lifecycle management. ExlService Holdings, Inc. was founded in 1999 and is headquartered in New York, New York.