Head-To-Head Contrast: WNS (NYSE:WNS) versus Akamai Technologies (NASDAQ:AKAM)

WNS (NYSE:WNS) and Akamai Technologies (NASDAQ:AKAM) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Earnings and Valuation

This table compares WNS and Akamai Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WNS $912.60 million 4.12 $102.62 million $2.16 35.22
Akamai Technologies $3.20 billion 6.07 $557.05 million $4.16 28.63

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for WNS and Akamai Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WNS 0 1 8 0 2.89
Akamai Technologies 0 5 7 0 2.58

WNS currently has a consensus target price of $81.11, indicating a potential upside of 6.63%. Akamai Technologies has a consensus target price of $121.92, indicating a potential upside of 2.39%. Given WNS’s stronger consensus rating and higher probable upside, analysts clearly believe WNS is more favorable than Akamai Technologies.

Insider & Institutional Ownership

97.6% of WNS shares are held by institutional investors. Comparatively, 88.0% of Akamai Technologies shares are held by institutional investors. 1.6% of Akamai Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares WNS and Akamai Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WNS 11.23% 16.86% 10.52%
Akamai Technologies 18.00% 17.41% 9.52%

Risk and Volatility

WNS has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Akamai Technologies has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

About WNS

WNS (Holdings) Limited, a business process management (BPM) company, provides data, voice, analytical, and business transformation services worldwide. The company operates through two segments, WNS Global BPM and WNS Auto Claims BPM. It offers industry-specific services to clients primarily in insurance; diversified businesses, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecom; travel and leisure; healthcare; utilities; shipping and logistics; consulting and professional services; and banking and financial services. It also provides a range of services, such as finance and accounting, customer experience, research and analytics, technology, legal, and human resources outsourcing services. In addition, the company offers transformation services designed to allow its clients to enhance productivity, 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 comprising credit hire and repair. The company was founded in 1996 and is based in Mumbai, India.

About Akamai Technologies

Akamai Technologies, Inc. provides cloud services for securing, delivering, and optimizing content and business applications over the internet in the United States and internationally. The company offers cloud and enterprise security solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance. It also provides web and mobile performance solutions to enable dynamic websites and applications; media delivery solutions, including video streaming and video player services, game and software delivery, broadcast operations, authoritative domain name system, resolution, and data and analytics; and edge compute solutions to enable developers to deploy and distribute code at the edge. In addition, the company offers carrier offerings, including cyberthreat protection, parental controls, DNS infrastructure and content delivery solutions; and an array of service and support to assist customers with integrating, configuring, optimizing, and managing its offerings. It sells its solutions through direct sales and service organizations, as well as through various channel partners. Akamai Technologies, Inc. has a strategic partnership with Queue-It to deliver a cure for Covid vaccine registration. The company was founded in 1998 and is headquartered in Cambridge, Massachusetts.

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