Head to Head Analysis: Wix.com (NASDAQ:WIX) and Kyndryl (NYSE:KD)

Kyndryl (NYSE:KD) and Wix.com (NASDAQ:WIX) are both mid-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares Kyndryl and Wix.com”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyndryl	$15.09 billion	0.17	$199.00 million	$0.37	32.21
Wix.com	$1.99 billion	2.17	$50.65 million	($3.54)	-20.94

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

Risk and Volatility

Kyndryl has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500. Comparatively, Wix.com has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Kyndryl and Wix.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyndryl	2	7	0	0	1.78
Wix.com	2	10	11	0	2.39

Kyndryl presently has a consensus target price of $16.50, suggesting a potential upside of 38.45%. Wix.com has a consensus target price of $91.29, suggesting a potential upside of 23.14%. Given Kyndryl’s higher possible upside, research analysts plainly believe Kyndryl is more favorable than Wix.com.

Institutional & Insider Ownership

71.5% of Kyndryl shares are held by institutional investors. Comparatively, 81.5% of Wix.com shares are held by institutional investors. 2.0% of Kyndryl shares are held by insiders. Comparatively, 6.2% of Wix.com shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kyndryl	0.58%	12.24%	1.33%
Wix.com	-8.19%	-1.61%	0.40%

Summary

Kyndryl beats Wix.com on 9 of the 14 factors compared between the two stocks.

About Kyndryl

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, communications, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.

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.