Wipro (NYSE:WIT – Get Free Report) and Kingsoft Cloud (NASDAQ:KC – Get Free Report) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Wipro and Kingsoft Cloud’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wipro | 13.93% | 15.40% | 9.67% |
| Kingsoft Cloud | -5.49% | -7.85% | -2.41% |
Analyst Ratings
This is a summary of recent ratings and price targets for Wipro and Kingsoft Cloud, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wipro | 4 | 0 | 0 | 0 | 1.00 |
| Kingsoft Cloud | 1 | 1 | 4 | 0 | 2.50 |
Risk & Volatility
Wipro has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Kingsoft Cloud has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500.
Insider & Institutional Ownership
2.4% of Wipro shares are held by institutional investors. Comparatively, 13.4% of Kingsoft Cloud shares are held by institutional investors. 1.0% of Wipro shares are held by company insiders. Comparatively, 14.2% of Kingsoft Cloud shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Wipro and Kingsoft Cloud”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wipro | $949.68 billion | 0.02 | $1.41 billion | $0.13 | 13.12 |
| Kingsoft Cloud | $1.37 billion | 2.05 | -$133.88 million | ($0.28) | -33.07 |
Wipro has higher revenue and earnings than Kingsoft Cloud. Kingsoft Cloud is trading at a lower price-to-earnings ratio than Wipro, indicating that it is currently the more affordable of the two stocks.
About Wipro
Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.
About Kingsoft Cloud
Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.
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