Fusemachines (NASDAQ:FUSE) and Wipro (NYSE:WIT) Head to Head Analysis

Wipro (NYSE:WIT) and Fusemachines (NASDAQ:FUSE) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Risk and Volatility

Wipro has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Fusemachines has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Wipro and Fusemachines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wipro	13.93%	15.40%	9.67%
Fusemachines	N/A	N/A	N/A

Valuation & Earnings

This table compares Wipro and Fusemachines”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wipro	$9.87 billion	1.66	$1.41 billion	$0.13	12.73
Fusemachines	$7.71 million	1.96	-$930,000.00	($0.13)	-4.01

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

Institutional & Insider Ownership

2.4% of Wipro shares are held by institutional investors. Comparatively, 46.8% of Fusemachines shares are held by institutional investors. 1.0% of Wipro shares are held by insiders. Comparatively, 31.8% of Fusemachines shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Wipro and Fusemachines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wipro	3	1	0	0	1.25
Fusemachines	1	0	0	0	1.00

Wipro currently has a consensus target price of $1.70, indicating a potential upside of 2.72%. Given Wipro’s stronger consensus rating and higher possible upside, equities analysts clearly believe Wipro is more favorable than Fusemachines.

Summary

Wipro beats Fusemachines on 10 of the 13 factors compared between the two stocks.

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.

About Fusemachines

Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions. The company offers Fuse Anna which is an AI assistant for follow ups through daily reminders; and Fuse Prospector which is an artificial intelligence sales platform. Further, the company offers managed outbound services and AI as a service for big data processing, data management, and cloud analytics. Additionally, it offers Fusemachines AI fellowship program, which provides selected scholars from underserved communities with mentorship and resources to develop advanced skills in artificial intelligence and machine learning; as well as Fusemachines Academy, a learning platform to build and enhance skills. The company serves governments, financial institutions, and e-commerce companies. The company is based in New York, New York with an additional offices in Kathmandu, Nepal; Toronto, Canada; Kochi, India; Santo Domingo, Cuba.