Analyzing DHI Group (DHX) and WNS (WNS)

DHI Group (NYSE: DHX) and WNS (NYSE:WNS) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Volatility & Risk

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DHI Group has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, WNS has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DHI Group and WNS, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DHI Group 0 3 0 0 2.00
WNS 0 1 10 1 3.00

DHI Group presently has a consensus price target of $4.33, indicating a potential upside of 154.90%. WNS has a consensus price target of $48.08, indicating a potential upside of 5.08%. Given DHI Group’s higher possible upside, analysts clearly believe DHI Group is more favorable than WNS.

Institutional & Insider Ownership

86.2% of DHI Group shares are held by institutional investors. Comparatively, 86.4% of WNS shares are held by institutional investors. 7.2% of DHI Group shares are held 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.

Earnings & Valuation

This table compares DHI Group and WNS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DHI Group $207.95 million 0.41 $15.97 million $0.15 11.33
WNS $602.50 million 3.82 $37.76 million $1.48 30.92

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

Profitability

This table compares DHI Group and WNS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DHI Group 7.68% 8.61% 3.34%
WNS 7.96% 20.19% 12.34%

Summary

WNS beats DHI Group on 13 of the 15 factors compared between the two stocks.

About DHI Group

DHI Group, Inc. provides data, insights, and connections services to professional communities in the United States and internationally. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and other technology and engineering professionals; and ClearanceJobs, an Internet-based career network, which matches security-cleared professionals with hiring companies searching for employees. It also provides eFinancialCareers, a financial services careers Website for financial services industry professionals from various sectors, including asset management, risk management, investment banking, and information technology; Rigzone, a Website that delivers online content, data, and career services in the oil and gas industry; Hcareers, a Website for hospitality jobs in North America; and BioSpace, a resource for biotechnology careers, news, and resources in the area of life sciences. Further, it operates Targeted Job Fairs for technology, energy, and security-cleared professionals. The company serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; consulting firms; and marketing departments of companies. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1991 and is headquartered in New York, New York.

About WNS

WNS (Holdings) Limited is a global provider of business process management (BPM) services. The Company offers data, voice, analytical and business transformation services. The Company’s segments include WNS Global BPM and WNS Auto Claims BPM. Its operating segments include travel, insurance, banking and financial services, healthcare, utilities, retail and consumer products groups, auto claims and others. The WNS Global BPM includes the Company’s business activities with the exception of WNS Auto Claims BPM. WNS Auto Claims BPM is the Company’s automobile claims management business. The Company focuses on various industry verticals, such as insurance; travel and leisure; diversified businesses, including manufacturing, retail, consumer packaged goods (CPG), media and entertainment, and telecommunication (telecom); utilities; consulting and professional services; banking and financial services; healthcare, and shipping and logistics.

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