WNS (WNS) vs. The9 (NCTY) Critical Review
WNS (NYSE:WNS) and The9 (NASDAQ:NCTY) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.
Valuation and Earnings
This table compares WNS and The9’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WNS||$758.00 million||3.01||$86.43 million||$1.81||24.83|
|The9||$11.24 million||0.75||-$18.16 million||N/A||N/A|
This is a summary of recent recommendations and price targets for WNS and The9, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
WNS presently has a consensus price target of $57.00, indicating a potential upside of 26.81%. Given WNS’s higher probable upside, equities research analysts clearly believe WNS is more favorable than The9.
This table compares WNS and The9’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
84.2% of WNS shares are owned by institutional investors. Comparatively, 1.2% of The9 shares are owned by institutional investors. 30.8% of The9 shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
WNS has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, The9 has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500.
WNS beats The9 on 9 of the 11 factors compared between the two stocks.
WNS Company Profile
WNS (Holdings) Limited, a business process management company, together with its subsidiaries, provides data, voice, analytical, and business transformation services worldwide. It operates through two segments, WNS Global BPM and WNS Auto Claims BPM. The company offers industry-specific services to clients primarily in insurance; travel and leisure; diversified businesses, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunication; utilities; consulting and professional services; healthcare; banking and financial services; and shipping and logistics industries. It also provides shared services, such as customer interaction, finance and accounting, research and analytics, technology, legal, and human resources outsourcing services. In addition, the company offers transformation services designed to help its clients to modify their business processes to enhance productivity, as well as manage changes in the business environment and leverage business knowledge to increase market competitiveness. Further, it provides claims handling and repair management services for automobile repairs through a network of third party repair centers; and a suite of accident management services, such as credit hire and credit repair. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.
The9 Company Profile
The9 Limited, together with its subsidiaries, operates as an online game developer and operator in the People's Republic of China. The company offers online games, including massively multiplayer online games, mobile games, Web games, and TV games. It also provides training services, such as smartphone application programming training services to college students. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was founded in 1999 and is headquartered in Shanghai, the People's Republic of China.
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