Grid Dynamics (NASDAQ:GDYN – Get Free Report) and Wix.com (NASDAQ:WIX – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.
Profitability
This table compares Grid Dynamics and Wix.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grid Dynamics | 2.94% | 1.37% | 1.19% |
| Wix.com | 8.16% | -80.80% | 8.85% |
Risk and Volatility
Grid Dynamics has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Wix.com has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grid Dynamics | 0 | 0 | 4 | 1 | 3.20 |
| Wix.com | 0 | 3 | 17 | 3 | 3.00 |
Grid Dynamics currently has a consensus price target of $18.75, indicating a potential upside of 53.19%. Wix.com has a consensus price target of $228.95, indicating a potential upside of 41.54%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Grid Dynamics is more favorable than Wix.com.
Earnings and Valuation
This table compares Grid Dynamics and Wix.com”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grid Dynamics | $350.57 million | 2.95 | $4.04 million | $0.12 | 102.00 |
| Wix.com | $1.81 billion | 5.00 | $138.32 million | $2.51 | 64.45 |
Wix.com has higher revenue and earnings than Grid Dynamics. Wix.com is trading at a lower price-to-earnings ratio than Grid Dynamics, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
71.2% of Grid Dynamics shares are owned by institutional investors. Comparatively, 81.5% of Wix.com shares are owned by institutional investors. 7.2% of Grid Dynamics shares are owned by company insiders. Comparatively, 6.2% of Wix.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Wix.com beats Grid Dynamics on 10 of the 15 factors compared between the two stocks.
About Grid Dynamics
Grid Dynamics Holdings, Inc., together with its subsidiaries, provides technology consulting, platform and product engineering, and analytics services in North America, Europe, and internationally. It offers cloud platform and product engineering services, such as architecting, designing, and building scalable and secure cloud-based platforms and business applications; and AI/machine learning and data platform engineering services that build platforms to facilitate batch and streaming data ingestion, quality governance, orchestration, semantic modeling, observability, and analysis at scale. The company provides digital engagement services, including digital ecosystem design and implementation; and supply chain, Internet of Thing, and advanced manufacturing, which focuses on transforming traditional operations into smart and connected ecosystems. It serves customers that operate in the tech, media, telecommunications, retail, consumer packaged goods, manufacturing, and finance industries. The company was formerly known as ChaSerg Technology Acquisition Corp. and changed its name to Grid Dynamics Holdings, Inc. Grid Dynamics Holdings, Inc. was founded in 2006 and is headquartered in San Ramon, California.
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.
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