WNS (NYSE:WNS) and Ritchie Bros. Auctioneers (NYSE:RBA) are both mid-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
This table compares WNS and Ritchie Bros. Auctioneers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ritchie Bros. Auctioneers||12.70%||18.95%||7.58%|
This table compares WNS and Ritchie Bros. Auctioneers’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WNS||$912.60 million||4.38||$102.62 million||$2.16||38.11|
|Ritchie Bros. Auctioneers||$1.38 billion||5.28||$170.10 million||$1.68||39.20|
Ritchie Bros. Auctioneers has higher revenue and earnings than WNS. WNS is trading at a lower price-to-earnings ratio than Ritchie Bros. Auctioneers, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
98.5% of WNS shares are owned by institutional investors. Comparatively, 80.9% of Ritchie Bros. Auctioneers shares are owned by institutional investors. 0.5% of Ritchie Bros. Auctioneers shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent ratings and target prices for WNS and Ritchie Bros. Auctioneers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ritchie Bros. Auctioneers||1||7||0||0||1.88|
WNS presently has a consensus price target of $87.56, indicating a potential upside of 6.37%. Ritchie Bros. Auctioneers has a consensus price target of $64.43, indicating a potential downside of 2.16%. Given WNS’s stronger consensus rating and higher probable upside, analysts clearly believe WNS is more favorable than Ritchie Bros. Auctioneers.
Volatility & Risk
WNS has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Ritchie Bros. Auctioneers has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
WNS (Holdings) Ltd. engages in the provision of business process management solutions. Its services include industry-specific offerings, customer interaction, finance and accounting, human resources, procurement, and research and analytics. It operates through the WNS Global BPM and WNS Auto Claims BPM segments. The WNS Global BPM is delivered out of its delivery centers in China Costa Rica, India, the Philippines, Poland, Romania, South Africa, Sri Lanka, the United Kingdom, and the U.S. The WNS Auto Claims BPM segment offers fault and non-fault repairs and legal services in relation to personal injury claims. The company was founded by Alan Stephen Dunning, David Charles Tibble and Neeraj Bhargava on February 18, 2002 and is headquartered in Mumbai, India.
About Ritchie Bros. Auctioneers
Ritchie Bros. Auctioneers, Inc. is an industrial auctioneer, which engages in the sale of equipment to on-site and online bidders. It operates through the following segments: Auctions and Marketplaces, Ritchie Bros. Financial Services and Mascus. The Auctions and Marketplaces segment consists of live on site auctions, online auctions and marketplaces, and brokerage service. The Ritchie Bros. Financial Services segment refers to the financial brokerage service. The Mascus segment includes online listing service. The company was founded by David Edward Ritchie in 1958 and is headquartered in Burnaby, Canada.
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