Kingsoft Cloud (NASDAQ:KC) and Wipro (NYSE:WIT) Head to Head Comparison

Kingsoft Cloud (NASDAQ:KC) and Wipro (NYSE:WIT) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kingsoft Cloud and Wipro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingsoft Cloud	1	0	4	1	2.83
Wipro	4	0	0	0	1.00

Kingsoft Cloud presently has a consensus target price of $16.67, suggesting a potential upside of 96.77%. Wipro has a consensus target price of $1.70, suggesting a potential downside of 13.04%. Given Kingsoft Cloud’s stronger consensus rating and higher probable upside, analysts clearly believe Kingsoft Cloud is more favorable than Wipro.

Profitability

This table compares Kingsoft Cloud and Wipro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingsoft Cloud	-5.49%	-7.85%	-2.41%
Wipro	13.58%	15.26%	9.43%

Institutional & Insider Ownership

13.4% of Kingsoft Cloud shares are held by institutional investors. Comparatively, 2.4% of Wipro shares are held by institutional investors. 14.2% of Kingsoft Cloud shares are held by company insiders. Comparatively, 1.0% of Wipro shares are held 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.

Earnings and Valuation

This table compares Kingsoft Cloud and Wipro”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingsoft Cloud	$1.37 billion	1.87	-$133.88 million	($0.28)	-30.25
Wipro	$9.87 billion	1.96	$1.41 billion	$0.13	15.04

Wipro has higher revenue and earnings than Kingsoft Cloud. Kingsoft Cloud is trading at a lower price-to-earnings ratio than Wipro, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Kingsoft Cloud has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500. Comparatively, Wipro has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Summary

Wipro beats Kingsoft Cloud on 8 of the 15 factors compared between the two stocks.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.