Wix.Com (NASDAQ:WIX) and Synacor (NASDAQ:SYNC) Critical Comparison

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Wix.Com and Synacor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wix.Com 1 4 10 0 2.60
Synacor 0 2 0 0 2.00

Wix.Com presently has a consensus target price of $139.56, suggesting a potential upside of 2.85%. Given Wix.Com’s stronger consensus rating and higher probable upside, analysts clearly believe Wix.Com is more favorable than Synacor.

Profitability

This table compares Wix.Com and Synacor’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%
Synacor -6.57% -8.28% -4.45%

Valuation & Earnings

This table compares Wix.Com and Synacor’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wix.Com $603.70 million 11.21 -$37.12 million ($0.44) -308.41
Synacor $143.88 million 0.39 -$7.55 million N/A N/A

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

Institutional & Insider Ownership

85.3% of Wix.Com shares are held by institutional investors. Comparatively, 28.0% of Synacor shares are held by institutional investors. 25.3% of Synacor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Wix.Com has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Synacor has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500.

Summary

Wix.Com beats Synacor on 8 of the 12 factors compared between the two stocks.

Wix.Com Company Profile

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.

Synacor Company Profile

Synacor, Inc. operates as a technology development, multiplatform services, and revenue partner for video, Internet, and communications providers; and device manufacturers, governments, and enterprises in the United States and internationally. It enables its customers to provide their consumers engaging, multiscreen experiences with products that require scale, and actionable data and implementation. The company, through its managed portals and advertising solutions, enables its customers to earn revenue by monetizing media among their consumers. It also offers recurring and fee-based revenue solutions, such as Cloud ID Authentication that offers home-based auto-authentication and social login, which enhances the consumer experience by reducing login failures; Email/Collaboration Services that include white-label hosting, security, and migration; and paid content and premium services. The company was formerly known as CKMP, Inc. and changed its name to Synacor, Inc. in July 2001. Synacor, Inc. was founded in 1998 and is headquartered in Buffalo, New York.

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