Wix.com (NASDAQ:WIX) and The Trade Desk (NASDAQ:TTD) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.
Institutional and Insider Ownership
91.7% of Wix.com shares are held by institutional investors. Comparatively, 66.4% of The Trade Desk shares are held by institutional investors. 12.0% of The Trade Desk shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Wix.com and The Trade Desk's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Wix.com | -15.92% | -46.89% | -8.49% |
| The Trade Desk | 19.31% | 19.65% | 7.56% |
Analyst Ratings
This is a summary of recent ratings and price targets for Wix.com and The Trade Desk, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Wix.com | 0 | 1 | 17 | 0 | 2.94 |
| The Trade Desk | 0 | 6 | 11 | 0 | 2.65 |
Wix.com currently has a consensus target price of $316.7222, indicating a potential upside of 9.67%. The Trade Desk has a consensus target price of $815.2105, indicating a potential upside of 23.25%. Given The Trade Desk's higher probable upside, analysts clearly believe The Trade Desk is more favorable than Wix.com.
Risk and Volatility
Wix.com has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500. Comparatively, The Trade Desk has a beta of 2.59, meaning that its stock price is 159% more volatile than the S&P 500.
Valuation and Earnings
This table compares Wix.com and The Trade Desk's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Wix.com | $761.09 million | 21.26 | $-86,410,000.00 | ($0.99) | -291.71 |
| The Trade Desk | $661.06 million | 47.41 | $108.32 million | $2.27 | 291.38 |
The Trade Desk has lower revenue, but higher earnings than Wix.com. Wix.com is trading at a lower price-to-earnings ratio than The Trade Desk, indicating that it is currently the more affordable of the two stocks.
Summary
The Trade Desk beats Wix.com on 10 of the 14 factors compared between the two stocks.
