Wix.Com (NASDAQ: GOOGL) and Alphabet Inc Class A (NASDAQ:GOOGL) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Volatility and Risk
Wix.Com has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Alphabet Inc Class A has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Wix.Com and Alphabet Inc Class A, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alphabet Inc Class A||0||4||31||0||2.89|
Wix.Com currently has a consensus target price of $100.27, indicating a potential downside of 5.94%. Alphabet Inc Class A has a consensus target price of $1,316.84, indicating a potential upside of 9.82%. Given Alphabet Inc Class A’s stronger consensus rating and higher probable upside, analysts plainly believe Alphabet Inc Class A is more favorable than Wix.Com.
Earnings & Valuation
This table compares Wix.Com and Alphabet Inc Class A’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wix.Com||$425.64 million||11.74||-$56.27 million||($1.00)||-106.60|
|Alphabet Inc Class A||$110.86 billion||7.53||$12.66 billion||$32.05||37.41|
Alphabet Inc Class A has higher revenue and earnings than Wix.Com. Wix.Com is trading at a lower price-to-earnings ratio than Alphabet Inc Class A, indicating that it is currently the more affordable of the two stocks.
This table compares Wix.Com and Alphabet Inc Class A’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alphabet Inc Class A||13.16%||18.24%||14.32%|
Insider & Institutional Ownership
88.0% of Wix.Com shares are owned by institutional investors. Comparatively, 33.6% of Alphabet Inc Class A shares are owned by institutional investors. 13.2% of Alphabet Inc Class A shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Alphabet Inc Class A beats Wix.Com on 11 of the 15 factors compared between the two stocks.
Wix.com Ltd. develops and markets an Internet service that allows users to create Web content in Latin America, Europe, North America, Asia, and internationally. It offers Web development, design, and management solutions and apps through an online platform that enables its user base of businesses, organizations, professionals, and individuals to create a digital presence. The company's principal product is the Wix Editor, a drag-and-drop visual development and Website editing environment platform. Its applications and value-added solutions comprise Wix App Market, an online platform that offers its users a range of software apps, which could be integrated as add-ons into its users' Websites. In addition, the company provides Wix ShoutOut, which enables users to create and send customized email campaigns, such as newsletters, updates, and promotions directly from their Wix accounts. Further, it offers Wix Stores that allows its users to create, design, and manage an online store through which they may sell their products online and process payments using an integrated shopping cart app; Wix Bookings, an online appointment booking solution; Wix Hotels, a Website for hotels, B&Bs, and vacation rentals; Wix Music, an advanced music player solution; and Wix Restaurants that provides various solutions for restauranteurs, including Wix Restaurants menus, orders, and reservations. Additionally, the company provides Wix Photography, a solution for photographers looking to create their portfolio and manage their business online; Wix Video that allows its customers to showcase, promote, and sell videos on their Wix Website; and customer support and services. As of December 31, 2017, it had approximately 119.3 million registered users and 2,465,160 premium subscriptions. The company was formerly known as Wixpress Ltd. Wix.com Ltd. was founded in 2006 and is headquartered in Tel Aviv, Israel.
About Alphabet Inc Class A
Alphabet Inc., through its subsidiaries, provides online advertising services in the United States and internationally. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure and newer efforts, including Virtual Reality. This segment also offers digital content, enterprise cloud services, and hardware products, as well as other miscellaneous products and services. The Other Bets segment includes businesses, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X, as well as fiber Internet and Television services. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California.
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