HUYA (NYSE:HUYA) versus Wix.Com (NYSE:WIX) Head-To-Head Review

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

Profitability

This table compares HUYA and Wix.Com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HUYA 5.50% 5.88% 4.59%
Wix.Com -9.80% -24.02% -4.28%

Insider and Institutional Ownership

25.5% of HUYA shares are held by institutional investors. Comparatively, 87.0% of Wix.Com shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

HUYA has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500. Comparatively, Wix.Com has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for HUYA and Wix.Com, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HUYA 0 0 10 0 3.00
Wix.Com 1 5 9 0 2.53

HUYA currently has a consensus target price of $26.83, suggesting a potential upside of 30.17%. Wix.Com has a consensus target price of $149.43, suggesting a potential downside of 3.74%. Given HUYA’s stronger consensus rating and higher possible upside, equities analysts plainly believe HUYA is more favorable than Wix.Com.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HUYA $678.27 million 6.63 -$281.83 million $0.10 206.10
Wix.Com $603.70 million 12.82 -$37.12 million ($0.44) -352.82

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

Summary

HUYA beats Wix.Com on 10 of the 13 factors compared between the two stocks.

HUYA Company Profile

HUYA Inc., through its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company also provides advertising and online game-related services. As of December 31, 2017, its live streaming content covered approximately 2,600 games, including mobile, PC, and console games. The company was founded in 2014 and is based in Guangzhou, China. HUYA Inc. is a subsidiary of YY Inc.

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.

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