Head to Head Analysis: Facebook (NASDAQ:FB) and Wix.Com (NASDAQ:WIX)

Facebook (NASDAQ:FB) and Wix.Com (NASDAQ:WIX) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Earnings & Valuation

This table compares Facebook and Wix.Com’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Facebook $70.70 billion 9.15 $18.49 billion $6.43 35.31
Wix.Com $761.09 million 16.79 -$86.41 million ($0.99) -258.81

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

Profitability

This table compares Facebook and Wix.Com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Facebook 28.57% 21.54% 16.34%
Wix.Com -11.81% -29.30% -5.39%

Analyst Recommendations

This is a summary of current recommendations and price targets for Facebook and Wix.Com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Facebook 1 3 40 0 2.89
Wix.Com 0 2 14 0 2.88

Facebook currently has a consensus price target of $247.17, indicating a potential upside of 8.85%. Wix.Com has a consensus price target of $217.81, indicating a potential downside of 14.99%. Given Facebook’s stronger consensus rating and higher probable upside, equities analysts plainly believe Facebook is more favorable than Wix.Com.

Institutional and Insider Ownership

65.1% of Facebook shares are held by institutional investors. Comparatively, 91.4% of Wix.Com shares are held by institutional investors. 14.1% of Facebook shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Facebook has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Wix.Com has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500.

Summary

Facebook beats Wix.Com on 11 of the 14 factors compared between the two stocks.

About Facebook

Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. The company's products include Facebook that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing photos, videos, and messages; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices; and WhatsApp, a messaging application for use by people and businesses to communicate in a private way. It also provides Oculus, a hardware, software, and developer ecosystem, which allows people to come together and connect with each other through its Oculus virtual reality products. As of December 31, 2018, it had approximately 1.52 billion daily active users. The company was founded in 2004 and is headquartered in Menlo Park, California.

About Wix.Com

Wix.com Ltd. develops and markets an Internet service that allows users to create Web content in Latin America, Europe, North America, Asia, and internationally. It offers Web development, design, and management solutions and apps through an online platform that enables its user base of businesses, organizations, professionals, and individuals to create a digital presence. The company's principal product is the Wix Editor, a drag-and-drop visual development and Website editing environment platform. Its applications and value-added solutions comprise Wix App Market, an online platform that offers its users a range of software apps, which could be integrated as add-ons into its users' Websites. In addition, the company provides Wix ShoutOut, which enables users to create and send customized email campaigns, such as newsletters, updates, and promotions directly from their Wix accounts. Further, it offers Wix Stores that allows its users to create, design, and manage an online store through which they may sell their products online and process payments using an integrated shopping cart app; Wix Bookings, an online appointment booking solution; Wix Hotels, a Website for hotels, B&Bs, and vacation rentals; Wix Music, an advanced music player solution; and Wix Restaurants that provides various solutions for restauranteurs, including Wix Restaurants menus, orders, and reservations. Additionally, the company provides Wix Photography, a solution for photographers looking to create their portfolio and manage their business online; Wix Video that allows its customers to showcase, promote, and sell videos on their Wix Website; and customer support and services. As of December 31, 2017, it had approximately 119.3 million registered users and 2,465,160 premium subscriptions. The company was formerly known as Wixpress Ltd. Wix.com Ltd. was founded in 2006 and is headquartered in Tel Aviv, Israel.

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