Wix.com (NASDAQ:WIX – Get Free Report) and Amdocs (NASDAQ:DOX – Get Free Report) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.
Profitability
This table compares Wix.com and Amdocs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wix.com | -1.97% | -33.28% | 2.84% |
| Amdocs | 11.81% | 19.77% | 10.87% |
Institutional & Insider Ownership
81.5% of Wix.com shares are owned by institutional investors. Comparatively, 92.0% of Amdocs shares are owned by institutional investors. 6.2% of Wix.com shares are owned by insiders. Comparatively, 15.4% of Amdocs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wix.com | 2 | 9 | 10 | 1 | 2.45 |
| Amdocs | 1 | 3 | 3 | 0 | 2.29 |
Wix.com currently has a consensus target price of $94.10, indicating a potential upside of 83.04%. Amdocs has a consensus target price of $86.67, indicating a potential upside of 66.35%. Given Wix.com’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Wix.com is more favorable than Amdocs.
Earnings & Valuation
This table compares Wix.com and Amdocs”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wix.com | $1.99 billion | 1.50 | $50.65 million | ($0.78) | -65.91 |
| Amdocs | $4.53 billion | 1.24 | $564.70 million | $5.00 | 10.42 |
Amdocs has higher revenue and earnings than Wix.com. Wix.com is trading at a lower price-to-earnings ratio than Amdocs, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Wix.com has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Amdocs has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.
Summary
Amdocs beats Wix.com 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 Amdocs
Amdocs Limited, through its subsidiaries, provides software and services worldwide. It designs, develops, operates, implements, supports, and markets open and modular cloud portfolio. The company provides CES23, a 5G and cloud-native microservices-based market-leading customer experience suite, that enables service providers to build, deliver, and monetize advanced services; Amdocs Subscription Marketplace, a software-as-a-service-based platform that includes an expansive network of pre-integrated digital services, such as media, gaming, eLearning, sports, and retail to security and business services; the monetization suite for charging, billing, policy, and revenue management; Intelligent networking suite with a set of modular, flexible, and open service lifecycle management capabilities for network automation journeys; amAIz, a telco GenAI framework; Amdocs Digital Brands Suite, a pre-integrated digital business suite; and Amdocs eSIM Cloud for service providers. It also offers AI-powered, cloud-native, and home operating systems; data intelligence solutions and applications; end-to-end application development and maintenance services; and ongoing maintenance services. In addition, the company provides a line of services designed for various stages of a service provider’s lifecycle includes consulting, delivery, quality engineering, operations, systems integration, network services, experience-driven services, data, cloud, and content services; managed services comprising application development, modernization and maintenance, IT and infrastructure services, testing and professional services that are designed to assist customers in the selection, implementation, operation, management, and maintenance of IT systems. It serves to the communications, entertainment, and media industry service providers, as well as mobile virtual network operators. Amdocs Limited was founded in 1988 and is headquartered in Saint Louis, Missouri.
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