Marchex (MCHX) & WNS (WNS) Head to Head Comparison

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

Profitability

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

Net Margins Return on Equity Return on Assets
Marchex -3.99% -3.54% -3.00%
WNS 11.40% 21.54% 13.50%

Earnings & Valuation

This table compares Marchex and WNS’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marchex $90.29 million 1.55 -$6.08 million ($0.14) -22.71
WNS $758.00 million 3.54 $86.43 million $1.81 29.40

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

Institutional & Insider Ownership

46.3% of Marchex shares are held by institutional investors. Comparatively, 86.3% of WNS shares are held by institutional investors. 27.4% of Marchex 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.

Analyst Recommendations

This is a breakdown of current ratings for Marchex and WNS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marchex 0 0 1 0 3.00
WNS 0 1 10 1 3.00

WNS has a consensus target price of $49.00, indicating a potential downside of 7.91%. Given WNS’s higher probable upside, analysts clearly believe WNS is more favorable than Marchex.

Risk & Volatility

Marchex has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, WNS has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Summary

WNS beats Marchex on 11 of the 13 factors compared between the two stocks.

About Marchex

Marchex, Inc. operates as a call analytics company. Its products include Marchex Call Analytics, an analytics technology platform that provides data and insights to measure the performance of mobile, online, and offline advertising for advertisers and small business resellers; and Marchex Speech Analytics delivers actionable operational and advertising insights of inbound calls from consumer's interactions. The company also provides Marchex Omnichannel Analytics Cloud products, such as Marchex Search Analytics, a product for search marketers that drive phone calls from search campaigns; Marchex Display and Video Analytics, a product for marketers that buy digital display advertising; Marchex Site Analytics; and Marchex Social Analytics. It offers Marchex Audience Targeting leverages call data and can automatically build audience segments for display and social media platforms; and Marchex Call Marketplace, a mobile advertising network for businesses that depend on inbound phone calls to drive sales, as well as offer advertisers ad placements across various mobile and online media sources to deliver qualified calls to their businesses. The company also provides Local Leads platform, a service advertising solution for small business resellers, such as Yellow Pages providers and vertical marketing service providers to sell call advertising, search marketing, and other lead generation products through their existing sales channels to small business advertisers. In addition, it offers lead services, including pay-for-call, search marketing, and ad creation, as well as include features, such as call tracking, geo-targeting, campaign management, reporting, and analytics. The company offers its services through direct sales, reseller partnerships, and referral agreements and technology integration partners worldwide. Marchex, Inc. was founded in 2003 and is headquartered in Seattle, Washington.

About WNS

WNS (Holdings) Limited, a business process management company, provides data, voice, analytical, and business transformation services worldwide. It operates through two segments, WNS Global BPM and WNS Auto Claims BPM. The company offers industry-specific services to clients primarily in the insurance; travel and leisure; diversified businesses, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunications; utilities; consulting and professional services; healthcare; banking and financial services; and shipping and logistics industries. It also provides a range of services in the areas of customer interaction, finance and accounting, research and analytics, technology, legal, and human resources outsourcing services across various industries. In addition, the company offers transformation services designed to help its clients to modify their business processes to enhance productivity, and manage changes in the business environment and leverage business knowledge to increase market competitiveness. Further, it provides claims handling and repair management services for automobile repairs through a network of third party repair centers; and a suite of accident management services, such as credit hire and credit repair. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.

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