Analyzing Wix.com (NASDAQ:WIX) and Alarum Technologies (NASDAQ:ALAR)

Alarum Technologies (NASDAQ:ALAR) and Wix.com (NASDAQ:WIX) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Alarum Technologies and Wix.com, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarum Technologies	0	0	1	0	3.00
Wix.com	0	2	14	0	2.88

Alarum Technologies presently has a consensus target price of $23.00, suggesting a potential downside of 32.89%. Wix.com has a consensus target price of $170.81, suggesting a potential upside of 0.48%. Given Wix.com’s higher probable upside, analysts clearly believe Wix.com is more favorable than Alarum Technologies.

Institutional & Insider Ownership

3.2% of Alarum Technologies shares are owned by institutional investors. Comparatively, 81.5% of Wix.com shares are owned by institutional investors. 2.7% of Alarum Technologies shares are owned by company insiders. Comparatively, 6.2% of Wix.com shares are owned by company 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 & Volatility

Alarum Technologies has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Wix.com has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Profitability

This table compares Alarum Technologies and Wix.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alarum Technologies	-11.62%	35.79%	21.88%
Wix.com	4.20%	-59.67%	4.49%

Earnings & Valuation

This table compares Alarum Technologies and Wix.com’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarum Technologies	$26.52 million	8.31	-$5.53 million	($1.47)	-23.31
Wix.com	$1.56 billion	6.22	$33.14 million	$1.14	149.12

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

Summary

Wix.com beats Alarum Technologies on 10 of the 14 factors compared between the two stocks.

About Alarum Technologies

Alarum Technologies Ltd. provides internet access and web data collection solutions in North, South, and Central America, Europe, Southeast Asia, the Middle East, and Africa. The company operates through two segments, Enterprise Internet Access Solutions and Consumer Internet Access Solutions. The company offers security blanket against ransomware, viruses, phishing, and other online threats, as well as secured and encrypted connection, masking the customers online activity and keeping them safe from hackers. It also provides privacy solutions and services, a software solution that uses an encryption protocol which is defined upon the process being used to generate a secured encrypted path and keep the users' data private and safe; and web data collection solution allows organizations to collect vast amounts of web and internet data by simultaneously connecting to the Internet from different IP addresses. In addition, the company offers static residential proxy network, rotating residential proxy network, data center proxy network, premium dedicated static residential proxies, mobile proxies, SERP data collection service, and social data collection service, as well as advertising services to enterprise customers. The company offers its products through resellers and internet service providers. It serves advertising and media companies, financial organizations, cyber security companies, industrial and commercial companies, online companies, education institutions, and AI recruitment market and other sectors. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv, Israel.

About Wix.com

Wix.com Ltd., together with its subsidiaries, operates as a cloud-based web development platform for registered users and creators worldwide. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; and Wix ADI that enables users to have the freedom of customization that the classic editor offers. It also provides Wix Logo Maker that generates a logo, including through the use of artificial intelligence; Wix Answers to support users; and Payments by Wix, a payment platform, which helps its users receive payments from their customers through their Wix Website. In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online. Further, it provides a range of complementary services, including Wix App Market, a marketplace that offers its registered users various free and paid web applications for building, growing, and managing their businesses; Wix marketplace that brings users seeking help in creating and managing a website together with Web experts; and Wix owner App, a native mobile application, which enables users to manage their Websites and Wix operating systems. The company was formerly known as Wixpress Ltd. The company was incorporated in 2006 and is headquartered in Tel Aviv, Israel.