WNS (NYSE: WNS) and Etsy (NASDAQ:ETSY) are both mid-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.
Insider & Institutional Ownership
87.3% of WNS shares are owned by institutional investors. Comparatively, 87.4% of Etsy shares are owned by institutional investors. 2.8% of Etsy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares WNS and Etsy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WNS||$758.00 million||3.36||$86.43 million||$1.81||27.98|
|Etsy||$441.23 million||12.50||$81.80 million||$0.38||121.21|
WNS has higher revenue and earnings than Etsy. WNS is trading at a lower price-to-earnings ratio than Etsy, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for WNS and Etsy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
WNS presently has a consensus target price of $51.80, indicating a potential upside of 2.27%. Etsy has a consensus target price of $41.75, indicating a potential downside of 9.36%. Given WNS’s stronger consensus rating and higher possible upside, research analysts clearly believe WNS is more favorable than Etsy.
Risk and Volatility
WNS has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Etsy has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500.
This table compares WNS and Etsy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
WNS beats Etsy on 10 of the 15 factors compared between the two stocks.
WNS (Holdings) Limited, a business process management company, together with its subsidiaries, 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 insurance; travel and leisure; diversified businesses, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunication; utilities; consulting and professional services; healthcare; banking and financial services; and shipping and logistics industries. It also provides shared services, such as customer interaction, finance and accounting, research and analytics, technology, legal, and human resources outsourcing services. In addition, the company offers transformation services designed to help its clients to modify their business processes to enhance productivity, as well as 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.
Etsy, Inc. operates Etsy.com, a commerce platform to make, sell, and buy goods online and offline primarily in the United States, United Kingdom, Canada, Australia, France, and Germany. It provides various seller services and tools that are designed to help entrepreneurs for starting, managing, and scaling their businesses. The company offers approximately 50 million items across approximately 50 retail categories to buyers. It also provides various seller services, including Etsy payments, a payment processing service; promoted listings, an on-site advertising service that allows sellers to pay for prominent placement of their listings in search results; shipping labels, which allows sellers in the United States and Canada to purchase discounted shipping labels; and pattern, a service that allows sellers to build custom Websites, as well as offers seller tools and education resources to manage the administrative side of their businesses. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.
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