C3.ai (NYSE:AI – Get Free Report) and Wix.com (NASDAQ:WIX – Get Free Report) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Profitability
This table compares C3.ai and Wix.com’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
C3.ai | -92.08% | -40.69% | -33.35% |
Wix.com | 8.90% | -136.43% | 10.36% |
Volatility & Risk
C3.ai has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, Wix.com has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
C3.ai | 5 | 7 | 1 | 1 | 1.86 |
Wix.com | 0 | 3 | 17 | 3 | 3.00 |
C3.ai presently has a consensus target price of $22.09, indicating a potential upside of 15.30%. Wix.com has a consensus target price of $215.37, indicating a potential upside of 41.90%. Given Wix.com’s stronger consensus rating and higher probable upside, analysts clearly believe Wix.com is more favorable than C3.ai.
Institutional & Insider Ownership
39.0% of C3.ai shares are owned by institutional investors. Comparatively, 81.5% of Wix.com shares are owned by institutional investors. 26.5% of C3.ai shares are owned by company insiders. Comparatively, 6.2% of Wix.com shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares C3.ai and Wix.com”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
C3.ai | $389.06 million | 6.79 | -$288.70 million | ($2.60) | -7.37 |
Wix.com | $1.76 billion | 4.84 | $138.32 million | $2.81 | 54.01 |
Wix.com has higher revenue and earnings than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than Wix.com, indicating that it is currently the more affordable of the two stocks.
Summary
Wix.com beats C3.ai on 11 of the 15 factors compared between the two stocks.
About C3.ai
C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.
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.
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