WNS (NYSE:WNS) and Zillow Group (NASDAQ:ZG) are both mid-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.
This is a summary of recent ratings for WNS and Zillow Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
WNS presently has a consensus target price of $67.50, suggesting a potential upside of 12.24%. Zillow Group has a consensus target price of $46.65, suggesting a potential upside of 38.25%. Given Zillow Group’s higher probable upside, analysts plainly believe Zillow Group is more favorable than WNS.
This table compares WNS and Zillow Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
WNS has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Zillow Group has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.
Valuation and Earnings
This table compares WNS and Zillow Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WNS||$809.10 million||3.73||$105.43 million||$2.25||26.73|
|Zillow Group||$1.33 billion||5.23||-$119.86 million||($0.26)||-129.77|
WNS has higher earnings, but lower revenue than Zillow Group. Zillow Group is trading at a lower price-to-earnings ratio than WNS, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
95.4% of WNS shares are held by institutional investors. Comparatively, 24.3% of Zillow Group shares are held by institutional investors. 20.9% of Zillow Group shares are held 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.
WNS beats Zillow Group on 10 of the 15 factors compared between the two stocks.
WNS Company Profile
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.
Zillow Group Company Profile
Zillow Group, Inc. operates real estate and home-related brands on mobile and the Web in the United States. The company offers a portfolio of brands and products to empowering consumers with unparalleled data, inspiration, and knowledge around homes and connecting them with real estate professionals. Its brands focus on various stages of the home lifecycle, including renting, buying, selling, and financing. The company’s portfolio of consumer brands comprise real estate and rental marketplaces, such as Zillow, Trulia, Mortgage Lenders of America, StreetEasy, HotPads, Naked Apartments, RealEstate.com, and Out East. It also provides a suite of marketing software and technology solutions; and owns and operates various business brands for real estate, rental, and mortgage professionals comprising Mortech, dotloop, Bridge Interactive, and New Home Feed. In addition, the company offers advertising services. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.
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