WNS (NYSE: WNS) and Cloudera (NYSE:CLDR) are both mid-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Institutional and Insider Ownership

85.9% of WNS shares are owned by institutional investors. Comparatively, 37.0% of Cloudera shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares WNS and Cloudera’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WNS $602.50 million 3.49 $37.76 million $1.09 38.34
Cloudera $261.02 million 9.28 -$187.31 million ($7.20) -2.38

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for WNS and Cloudera, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WNS 0 1 10 1 3.00
Cloudera 0 1 4 0 2.80

WNS presently has a consensus price target of $48.08, suggesting a potential upside of 15.06%. Cloudera has a consensus price target of $22.25, suggesting a potential upside of 29.74%. Given Cloudera’s higher probable upside, analysts clearly believe Cloudera is more favorable than WNS.

Profitability

This table compares WNS and Cloudera’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WNS 7.96% 20.19% 12.34%
Cloudera -119.74% N/A -39.42%

Summary

WNS beats Cloudera on 11 of the 13 factors compared between the two stocks.

WNS Company Profile

WNS (Holdings) Limited is a global provider of business process management (BPM) services. The Company offers data, voice, analytical and business transformation services. The Company’s segments include WNS Global BPM and WNS Auto Claims BPM. Its operating segments include travel, insurance, banking and financial services, healthcare, utilities, retail and consumer products groups, auto claims and others. The WNS Global BPM includes the Company’s business activities with the exception of WNS Auto Claims BPM. WNS Auto Claims BPM is the Company’s automobile claims management business. The Company focuses on various industry verticals, such as insurance; travel and leisure; diversified businesses, including manufacturing, retail, consumer packaged goods (CPG), media and entertainment, and telecommunication (telecom); utilities; consulting and professional services; banking and financial services; healthcare, and shipping and logistics.

Cloudera Company Profile

Cloudera, Inc. is a developer of platform for data management, machine learning and advanced analytics. The Company allows enterprises to operate, manage and move workloads across multiple architectures, mixing on premises and cloud environments, including all major public cloud infrastructure providers. It operates through two operating segments: subscription and services. Its products include Cloudera Enterprise Data Hub, Cloudera Analytic BD, Cloudera Operational DB, Cloudera Data Science & Engineering, and Cloud Essentials. The Company offers Cloudera Data Science for programmatic preparation, predictive modeling and machine learning; Cloudera Real Time for online, streaming and rea ltime applications; and Cloudera Analytics for business intelligence and structured query language (SQL) analytics. It has developed the hybrid open source software (HOSS) development model, which helps customers in managing, operating and securing their data and data architectures.

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