Ebix (NASDAQ: EBIX – Get a rating) and WidePoint (NYSE: WYY – Get a rating) are both small-cap IT and technology companies, but which is the better company? We’ll compare the two companies based on earnings strength, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.
Benefits and evaluation
This chart compares revenue, earnings per share, and valuation of Ebix and WidePoint.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Ebix||$994.94 million||0.80||$68.19 million||$2.13||12.08|
|wide stitch||$87.34 million||0.28||$340,000.00||($0.06)||-47.00|
Ebix has higher revenue and profit than WidePoint. WidePoint trades at a lower price-to-earnings ratio than Ebix, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of Ebix and WidePoint.
|Net margins||Return on equity||return on assets|
Insider and Institutional Ownership
68.7% of Ebix shares are held by institutional investors. By comparison, 12.4% of WidePoint’s shares are held by institutional investors. 15.4% of Ebix shares are held by company insiders. By comparison, 5.9% of WidePoint’s stock is held by company insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock will outperform the market over the long term.
Volatility and risk
Ebix has a beta of 2.47, indicating its stock price is 147% more volatile than the S&P 500. In comparison, WidePoint has a beta of 0.9, indicating its stock price is 10% less volatile than the S&P 500.
This is a breakdown of recent ratings for Ebix and WidePoint, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Ebix||0||0||0||0||N / A|
|wide stitch||0||0||0||0||N / A|
Ebix currently has a consensus target price of $150.00, indicating an upside potential of 482.98%. Given Ebix’s likely higher upside, analysts clearly believe that Ebix is more favorable than WidePoint.
Ebix beats WidePoint on 11 of the 11 factors compared between the two stocks.
Ebix Company Profile (Get a rating)
Ebix, Inc., together with its subsidiaries, provides on-demand infrastructure software exchanges and e-commerce services to the insurance, financial, travel and healthcare industries in the United States and the world. It develops and deploys insurance and reinsurance exchanges; provides software-as-a-service (SaaS) enterprise solutions in the areas of customer relationship management and front-end and back-end systems; and offers outsourced administration and risk compliance solutions. The company operates P&C exchanges primarily in Australia, New Zealand, the United Kingdom and the United States, which facilitates the exchange of insurance data between brokers and insurance companies with a focus on the areas of personal and business lines. Its exchange-related products and services include travel exchange and money transfer services; currency exchange and transfer of funds abroad; payment services; gift cards for consumers that can be redeemed at various merchants; and technology services for various providers in the areas of lending, wealth and asset management, and travel. The Company’s insurance exchange products and services include SaaS platform and related services; software licenses; and professional services including set-up, customization, training or consulting. Its risk compliance services cover insurance origination and monitoring certificates; advisory services comprising project management and development; and business process outsourcing services, including domain-intensive project management, systems consulting services, and adjudication/claims resolution services. The company was formerly known as Delphi Systems, Inc. and changed its name to Ebix, Inc. in December 2003. Ebix, Inc. was founded in 1976 and is headquartered in Johns Creek, Georgia.
WidePoint Company Profile (Get a rating)
WidePoint Corporation provides technology management as a service (TMaaS) to government and commercial enterprises in North America and Europe. It offers TMaaS solutions through a federally certified proprietary portal to manage, analyze and protect communication assets, as well as deploy identity management solutions that provide secure virtual and physical access to restricted environments. The company provides solutions for telecommunications lifecycle management, mobile device and identity management, as well as digital billing and analytics solutions. It also offers information technology as a service, including cybersecurity, cloud, network operations and professional services. WidePoint Corporation was founded in 1991 and is headquartered in Fairfax, Virginia.
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