Analyzing Wayfair (W) and Insight Enterprises (NSIT)

Wayfair (NYSE: W) and Insight Enterprises (NASDAQ:NSIT) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Institutional & Insider Ownership

75.0% of Wayfair shares are held by institutional investors. Comparatively, 97.0% of Insight Enterprises shares are held by institutional investors. 37.8% of Wayfair shares are held by company insiders. Comparatively, 1.8% of Insight Enterprises shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Wayfair and Insight Enterprises’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wayfair $4.72 billion 2.16 -$244.61 million ($2.80) -40.81
Insight Enterprises $6.70 billion 0.27 $90.68 million $3.24 15.53

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

Risk & Volatility

Wayfair has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, Insight Enterprises has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Wayfair and Insight Enterprises, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wayfair 1 8 11 0 2.50
Insight Enterprises 0 1 1 0 2.50

Wayfair presently has a consensus price target of $91.33, indicating a potential downside of 20.08%. Insight Enterprises has a consensus price target of $49.00, indicating a potential downside of 2.64%. Given Insight Enterprises’ higher possible upside, analysts clearly believe Insight Enterprises is more favorable than Wayfair.

Profitability

This table compares Wayfair and Insight Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wayfair -5.73% -31,507.11% -27.31%
Insight Enterprises 1.57% 15.75% 4.89%

Summary

Insight Enterprises beats Wayfair on 9 of the 13 factors compared between the two stocks.

About Wayfair

Wayfair Inc. engages in the e-commerce business in the United States, Europe, and internationally. The company offers approximately 10 million products for the home sector under various brands. It offers a selection of furniture, décor, decorative accents, housewares, seasonal décor, and other home goods through its sites, such as Wayfair, Joss & Main, AllModern, DwellStudio, Perigold, and Birch Lane. Wayfair Inc. was founded in 2002 and is headquartered in Boston, Massachusetts.

About Insight Enterprises

Insight Enterprises, Inc. provides information technology (IT) hardware, software, and service solutions for small and medium sized firms, enterprises, governments, schools, and health care organizations in the United States, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. It sources, stages, configures, integrates, tests, deploys, and maintains its products spanning endpoints to infrastructure; and provides infrastructure management solutions. The company also provides insight managed office that offers desktop and notebook devices coupled with cloud-based productivity solutions; insight managed mobility, which provides tablet and cellular-based devices paired with cloud-based applications and its service desk; insight managed collaboration that allows clients to outsource their complex voice, conferencing, collaboration/team applications, and cloud-based redeployment of technologies; and insight managed deployment, which offers service level agreement-based outsourcing of distributed devices and technology, or edge, deployment, and support. In addition, it offers hybrid cloud, an on premise converged infrastructure augmented by off-premise public cloud integrated, managed, and secured; and intelligent network that provides WAN, LAN, wireless, and security solutions to connect hybrid cloud, branch infrastructure, and end users. Further, the company provides digital signage, kiosk, tablet, and smartphone endpoints integrated with off-the-shelf software applications; custom-developed applications to enable client-to-customer engagement; and custom-developed mobile, cloud, and IoT applications, as well as cloud, mobility, big data, and security solutions. Additionally, it distributes hardware products; offers software licensing optimization and implementation consulting services; and provides enterprise data center solutions. Insight Enterprises, Inc. was founded in 1988 and is headquartered in Tempe, Arizona.

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