Head to Head Review: Wix.Com (NASDAQ:WIX) and GigaMedia (NASDAQ:GIGM)

Wix.Com (NASDAQ:WIX) and GigaMedia (NASDAQ:GIGM) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Earnings & Valuation

This table compares Wix.Com and GigaMedia’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wix.Com $603.70 million 11.85 -$37.12 million ($0.44) -326.02
GigaMedia $7.10 million 3.88 -$3.19 million N/A N/A

GigaMedia has lower revenue, but higher earnings than Wix.Com.

Insider & Institutional Ownership

85.7% of Wix.Com shares are held by institutional investors. Comparatively, 4.7% of GigaMedia shares are held by institutional investors. 1.0% of GigaMedia shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Wix.Com and GigaMedia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wix.Com 1 4 10 0 2.60
GigaMedia 0 0 0 0 N/A

Wix.Com currently has a consensus price target of $135.99, indicating a potential downside of 5.56%. Given Wix.Com’s higher possible upside, equities research analysts plainly believe Wix.Com is more favorable than GigaMedia.

Volatility & Risk

Wix.Com has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Profitability

This table compares Wix.Com and GigaMedia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wix.Com -8.70% -21.60% -3.70%
GigaMedia -41.94% -4.37% -4.09%

Summary

Wix.Com beats GigaMedia on 8 of the 11 factors compared between the two stocks.

About Wix.Com

Wix.com Ltd. develops and markets an Internet service that allows users to create Web content in Latin America, Europe, North America, Asia, and internationally. It offers Web development, design, and management solutions and apps through an online platform that enables its user base of businesses, organizations, professionals, and individuals to create a digital presence. The company's principal product is the Wix Editor, a drag-and-drop visual development and Website editing environment platform. Its applications and value-added solutions comprise Wix App Market, an online platform that offers its users a range of software apps, which could be integrated as add-ons into its users' Websites. In addition, the company provides Wix ShoutOut, which enables users to create and send customized email campaigns, such as newsletters, updates, and promotions directly from their Wix accounts. Further, it offers Wix Stores that allows its users to create, design, and manage an online store through which they may sell their products online and process payments using an integrated shopping cart app; Wix Bookings, an online appointment booking solution; Wix Hotels, a Website for hotels, B&Bs, and vacation rentals; Wix Music, an advanced music player solution; and Wix Restaurants that provides various solutions for restauranteurs, including Wix Restaurants menus, orders, and reservations. Additionally, the company provides Wix Photography, a solution for photographers looking to create their portfolio and manage their business online; Wix Video that allows its customers to showcase, promote, and sell videos on their Wix Website; and customer support and services. As of December 31, 2017, it had approximately 119.3 million registered users and 2,465,160 premium subscriptions. The company was formerly known as Wixpress Ltd. Wix.com Ltd. was founded in 2006 and is headquartered in Tel Aviv, Israel.

About GigaMedia

GigaMedia Limited provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company offers mobile and browser-based casual games through FunTown-branded platform. Its portfolio of PC-based casual games include MahJong, a traditional Chinese tile game; sports games, Web-based RPG, and mobile games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. The company also provides Tales Runner, a multi-player online obstacle running game in which players competes by running, jumping, dashing and using items. In addition, it owns and operates GigaCloud, a provider of cloud computing solutions and related services focused on the cloud services market for SMEs in Taiwan. GigaMedia Limited was founded in 1997 and is headquartered in Taipei, Taiwan.

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