Analyzing Vertiv (NYSE:VRT) & Wix.com (NASDAQ:WIX)

Wix.com (NASDAQ:WIX) and Vertiv (NYSE:VRT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Institutional & Insider Ownership

81.5% of Wix.com shares are owned by institutional investors. Comparatively, 89.9% of Vertiv shares are owned by institutional investors. 6.2% of Wix.com shares are owned by company insiders. Comparatively, 2.6% of Vertiv shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Wix.com has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Vertiv has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Wix.com and Vertiv, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wix.com	1	2	17	2	2.91
Vertiv	1	2	19	1	2.87

Wix.com currently has a consensus target price of $145.50, suggesting a potential upside of 57.69%. Vertiv has a consensus target price of $230.28, suggesting a potential downside of 10.43%. Given Wix.com’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Wix.com is more favorable than Vertiv.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wix.com	2.54%	-70.04%	7.27%
Vertiv	13.03%	49.55%	15.30%

Valuation & Earnings

This table compares Wix.com and Vertiv”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wix.com	$1.99 billion	2.70	$50.65 million	$0.81	113.91
Vertiv	$10.23 billion	9.61	$1.33 billion	$3.41	75.39

Vertiv has higher revenue and earnings than Wix.com. Vertiv 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

Vertiv beats Wix.com on 10 of the 15 factors compared between the two stocks.

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.

About Vertiv

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.