Critical Analysis: Fusemachines (NASDAQ:FUSE) and Wix.com (NASDAQ:WIX)

Fusemachines (NASDAQ:FUSE – Get Free Report) and Wix.com (NASDAQ:WIX – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Institutional & Insider Ownership

46.8% of Fusemachines shares are owned by institutional investors. Comparatively, 81.5% of Wix.com shares are owned by institutional investors. 31.8% of Fusemachines shares are owned by insiders. Comparatively, 6.2% of Wix.com shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Fusemachines has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Wix.com has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Fusemachines N/A N/A N/A
Wix.com -8.19% -1.61% 0.40%

Valuation & Earnings

This table compares Fusemachines and Wix.com”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fusemachines $7.71 million 1.64 -$930,000.00 ($0.13) -3.35
Wix.com $2.13 billion 1.99 $50.65 million ($3.54) -20.54

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fusemachines 1 0 0 0 1.00
Wix.com 2 10 11 0 2.39

Wix.com has a consensus target price of $91.29, suggesting a potential upside of 25.52%. Given Wix.com’s stronger consensus rating and higher probable upside, analysts clearly believe Wix.com is more favorable than Fusemachines.

Summary

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

About Fusemachines

(Get Free Report)

Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions. The company offers Fuse Anna which is an AI assistant for follow ups through daily reminders; and Fuse Prospector which is an artificial intelligence sales platform. Further, the company offers managed outbound services and AI as a service for big data processing, data management, and cloud analytics. Additionally, it offers Fusemachines AI fellowship program, which provides selected scholars from underserved communities with mentorship and resources to develop advanced skills in artificial intelligence and machine learning; as well as Fusemachines Academy, a learning platform to build and enhance skills. The company serves governments, financial institutions, and e-commerce companies. The company is based in New York, New York with an additional offices in Kathmandu, Nepal; Toronto, Canada; Kochi, India; Santo Domingo, Cuba.

About Wix.com

(Get Free Report)

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.

Receive News & Ratings for Fusemachines Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fusemachines and related companies with MarketBeat.com's FREE daily email newsletter.