Financial Analysis: Indra Sistemas (OTCMKTS:ISMAY) & Wix.com (NASDAQ:WIX)

Wix.com (NASDAQ:WIX) and Indra Sistemas (OTCMKTS:ISMAY) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Volatility and Risk

Wix.com has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Indra Sistemas has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Earnings and Valuation

This table compares Wix.com and Indra Sistemas”s gross 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	2.25	$50.65 million	($3.54)	-21.69
Indra Sistemas	$6.17 billion	2.03	$493.10 million	$1.47	24.14

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Wix.com and Indra Sistemas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wix.com	2	10	11	0	2.39
Indra Sistemas	0	1	1	0	2.50

Wix.com presently has a consensus price target of $91.29, suggesting a potential upside of 18.86%. Given Wix.com’s higher probable upside, equities analysts plainly believe Wix.com is more favorable than Indra Sistemas.

Insider and Institutional Ownership

81.5% of Wix.com shares are held by institutional investors. 6.2% of Wix.com shares are held by insiders. Comparatively, 0.3% of Indra Sistemas shares are held by 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.

Profitability

This table compares Wix.com and Indra Sistemas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wix.com	-8.19%	-1.61%	0.40%
Indra Sistemas	7.12%	22.61%	4.57%

Summary

Indra Sistemas beats Wix.com on 8 of the 14 factors compared between the two stocks.

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 Indra Sistemas

Indra Sistemas, S.A. operates as a technology and consulting company for aerospace, defense, and mobility business worldwide. The company operates through four segments: Defence, Air Traffic, Mobility, and Minsait. It offers Mova Consulting for planing and designing transport infrastructures; Mova Collect for ticketing, tolling, and back office applications; Mova Traffic for building traffic management and control solutions; Mova Protect for protection of businesses and people; Mova Experience; Mova Comms for connecting the transportation ecosystem with personalized communication solutions; Mova Care that provides infrastructure operation and maintenance, technology operation and maintenance, and transportation services operation and maintenance; and In-Mova Space, a technological mobility and infrastructure management platform. The company also provides Indra Air Automation; Indra Air Communication; Indra Air Navigation; Indra Air Surveillance; Indra Air Drones; Indra Air Information; and Indra Air Services for air traffic applications. In addition, the company offers defence and security solutions, including Platforms, defence systems, security, cyberdefence, space technologies applied to military operations, military and civilian training solutions, and logistics and maintenance services; and other technological solutions for public administration, industry and consumption, financial services, energy, and telco and media sectors. Indra Sistemas, S.A. was founded in 1921 and is based in Alcobendas, Spain.