Reviewing Fair Isaac (NYSE:FICO) and Wipro (NYSE:WIT)

Fair Isaac (NYSE:FICO) and Wipro (NYSE:WIT) are both large-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Fair Isaac and Wipro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fair Isaac	32.80%	-48.88%	31.72%
Wipro	15.07%	15.94%	10.44%

Volatility & Risk

Fair Isaac has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Wipro has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Insider and Institutional Ownership

85.8% of Fair Isaac shares are held by institutional investors. Comparatively, 2.4% of Wipro shares are held by institutional investors. 3.5% of Fair Isaac shares are held by insiders. Comparatively, 1.0% of Wipro 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.

Earnings & Valuation

This table compares Fair Isaac and Wipro”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fair Isaac	$1.93 billion	17.83	$512.81 million	$25.57	56.02
Wipro	$10.43 billion	2.80	$1.54 billion	$0.16	17.47

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Fair Isaac and Wipro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fair Isaac	0	2	11	1	2.93
Wipro	2	3	0	0	1.60

Fair Isaac currently has a consensus price target of $2,134.57, indicating a potential upside of 49.01%. Given Fair Isaac’s stronger consensus rating and higher possible upside, equities analysts clearly believe Fair Isaac is more favorable than Wipro.

Dividends

Fair Isaac pays an annual dividend of $0.08 per share and has a dividend yield of 0.0%. Wipro pays an annual dividend of $0.10 per share and has a dividend yield of 3.6%. Fair Isaac pays out 0.3% of its earnings in the form of a dividend. Wipro pays out 62.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Fair Isaac beats Wipro on 13 of the 17 factors compared between the two stocks.

About Fair Isaac

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. It offers FICO Customer Analytics, FICO Responsible AI, FICO Advisors, FICO Business Outcome Simulator, FICO Forecaster, FICO TRIAD Customer Manager, FICO Blaze Advisor, FICO Xpress Optimization, FICO Falcon Fraud Manager, FICO Analytics Workbench, FICO Data Orchestrator, FICO DMP Streaming, FICO Decision Optimizer, and FICO Strategy Director, as well as software implementation and configuration services. The company markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.

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.