Head-To-Head Analysis: WNS (NYSE:WNS) vs. Trip.com Group (NASDAQ:TCOM)

Trip.com Group (NASDAQ:TCOM) and WNS (NYSE:WNS) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Trip.com Group has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500. Comparatively, WNS has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Institutional & Insider Ownership

35.4% of Trip.com Group shares are held by institutional investors. Comparatively, 97.4% of WNS shares are held by institutional investors. 23.0% of Trip.com Group shares are held by company insiders. Comparatively, 2.0% of WNS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Trip.com Group and WNS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trip.com Group	0	0	10	2	3.17
WNS	0	3	5	0	2.63

Trip.com Group presently has a consensus price target of $77.25, suggesting a potential upside of 24.68%. WNS has a consensus price target of $62.25, suggesting a potential upside of 4.11%. Given Trip.com Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Trip.com Group is more favorable than WNS.

Profitability

This table compares Trip.com Group and WNS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trip.com Group	31.86%	12.04%	6.70%
WNS	10.03%	22.25%	11.58%

Valuation & Earnings

This table compares Trip.com Group and WNS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trip.com Group	$55.22 billion	0.73	$1.40 billion	$3.45	17.96
WNS	$1.31 billion	2.11	$140.15 million	$3.72	16.07

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

Summary

Trip.com Group beats WNS on 8 of the 15 factors compared between the two stocks.

About Trip.com Group

Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, It provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online inquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.

About WNS

WNS (Holdings) Limited, a business process management (BPM) company, provides data, voice, analytical, and business transformation services worldwide. The company operates through TSLU, MRHP, HCLS, and BFSI segments. It engages in diversified business, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunication; travel and leisure, utilities, shipping, and logistics; healthcare and life sciences; banking, financial services, and insurance; and Hi-tech and professional services, as well as procurement. In addition, the company provides a range of services, such as finance and accounting, customer experience, research and analytics, technology, legal, and human resources outsourcing services. Further, it offers digital transformation and consulting services designed to allow its clients to enhance productivity, manage changes in the business environment, and leverage business knowledge to increase market competitiveness. Additionally, the company provides claims handling and repair management services for automobile repairs through a network of third-party repair centers, as well as accident management services. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.