Contrasting Wix.com (NASDAQ:WIX) & Science Applications International (NASDAQ:SAIC)

Wix.com (NASDAQ:WIX) and Science Applications International (NASDAQ:SAIC) are both mid-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

81.5% of Wix.com shares are owned by institutional investors. Comparatively, 76.0% of Science Applications International shares are owned by institutional investors. 6.2% of Wix.com shares are owned by insiders. Comparatively, 0.7% of Science Applications International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Wix.com and Science Applications International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wix.com	2	9	11	0	2.41
Science Applications International	1	8	2	0	2.09

Wix.com presently has a consensus price target of $87.85, indicating a potential upside of 31.55%. Science Applications International has a consensus price target of $115.22, indicating a potential downside of 4.28%. Given Wix.com’s stronger consensus rating and higher possible upside, research analysts plainly believe Wix.com is more favorable than Science Applications International.

Volatility & Risk

Wix.com has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Science Applications International has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Valuation & Earnings

This table compares Wix.com and Science Applications International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wix.com	$1.99 billion	1.95	$50.65 million	($0.78)	-85.62
Science Applications International	$7.29 billion	0.70	$358.00 million	$8.88	13.56

Science Applications International has higher revenue and earnings than Wix.com. Wix.com is trading at a lower price-to-earnings ratio than Science Applications International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Wix.com and Science Applications International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wix.com	-1.97%	-33.28%	2.84%
Science Applications International	5.55%	36.96%	10.32%

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.

About Science Applications International

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company’s offerings include engineering; technology integration; IT modernization; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers’ IT infrastructure, as well as cloud migration, managed services, infrastructure modernization, and enterprise IT-as-a-service solutions. It serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; Department of Defense agencies; National Aeronautics and Space Administration; the U.S. Department of State; Department of Justice; Department of Homeland Security; and various intelligence community agencies, as well as U.S. federal civilian agencies. The company was formerly known as SAIC Gemini, Inc. and changed its name to Science Applications International Corporation in September 2013. Science Applications International Corporation was founded in 1969 and is headquartered in Reston, Virginia.