Financial Analysis: Wix.com (WIX) & The Competition

Wix.com (NASDAQ: WIX) is one of 186 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare Wix.com to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, profitability, risk and institutional ownership.

Profitability

This table compares Wix.com and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wix.com -14.27% -33,346.88% -19.15%
Wix.com Competitors -20.28% -270.89% -4.58%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Wix.com and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wix.com 0 6 9 0 2.60
Wix.com Competitors 731 4668 7442 164 2.54

Wix.com currently has a consensus target price of $77.46, suggesting a potential upside of 47.97%. As a group, “IT Services & Consulting” companies have a potential upside of 3.06%. Given Wix.com’s stronger consensus rating and higher probable upside, research analysts clearly believe Wix.com is more favorable than its peers.

Institutional and Insider Ownership

79.2% of Wix.com shares are held by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 16.5% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Wix.com has a beta of 2.25, indicating that its share price is 125% more volatile than the S&P 500. Comparatively, Wix.com’s peers have a beta of 1.11, indicating that their average share price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares Wix.com and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Wix.com $290.10 million -$46.89 million -41.22
Wix.com Competitors $2.79 billion $289.83 million 334.55

Wix.com’s peers have higher revenue and earnings than Wix.com. Wix.com is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

About Wix.com

Wix.com Ltd. (Wix) is a Web development platform enabling businesses and organizations to take businesses, brands and workflow online. The Company provides solutions that business owners can use to operate various aspects of their business online, such as selling goods, taking reservations, and scheduling and confirming appointments. These applications provide Wix registered users a bespoke front-end for customers visiting their Website, as well as a back-end management dashboard. The Company has developed these software applications for businesses in specific verticals, including retail and online stores, service providers, hotel and property management, music and restaurants. These vertical applications are integrated into the Company’s Website templates or can be installed on any existing Website and set up by the user and without the need to write code.

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