Comparing System1 (NYSE:SST) and Wix.com (NASDAQ:WIX)

System1 (NYSE:SST) and Wix.com (NASDAQ:WIX) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Earnings & Valuation

This table compares System1 and Wix.com’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
System1	$401.97 million	0.31	-$227.22 million	($2.27)	-0.61
Wix.com	$1.56 billion	5.70	$33.14 million	$1.14	136.68

Wix.com has higher revenue and earnings than System1. System1 is trading at a lower price-to-earnings ratio than Wix.com, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares System1 and Wix.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
System1	-49.23%	-42.08%	-12.99%
Wix.com	4.20%	-59.67%	4.49%

Institutional and Insider Ownership

87.5% of System1 shares are held by institutional investors. Comparatively, 81.5% of Wix.com shares are held by institutional investors. 28.3% of System1 shares are held by company insiders. Comparatively, 6.2% of Wix.com shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

System1 has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Wix.com has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for System1 and Wix.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
System1	0	1	1	0	2.50
Wix.com	0	4	13	0	2.76

System1 presently has a consensus price target of $3.50, suggesting a potential upside of 153.62%. Wix.com has a consensus price target of $180.31, suggesting a potential upside of 15.73%. Given System1’s higher possible upside, research analysts plainly believe System1 is more favorable than Wix.com.

Summary

Wix.com beats System1 on 10 of the 14 factors compared between the two stocks.

About System1

System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, 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.