Critical Review: SS&C Technologies (NASDAQ:SSNC) and Wetouch Technology (NASDAQ:WETH)

Wetouch Technology (NASDAQ:WETH) and SS&C Technologies (NASDAQ:SSNC) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Wetouch Technology and SS&C Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wetouch Technology	0	1	0	0	2.00
SS&C Technologies	0	3	5	1	2.78

SS&C Technologies has a consensus price target of $96.13, suggesting a potential upside of 42.37%. Given SS&C Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe SS&C Technologies is more favorable than Wetouch Technology.

Risk and Volatility

Wetouch Technology has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, SS&C Technologies has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Profitability

This table compares Wetouch Technology and SS&C Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wetouch Technology	18.34%	6.18%	5.99%
SS&C Technologies	12.65%	20.15%	7.05%

Insider & Institutional Ownership

96.9% of SS&C Technologies shares are held by institutional investors. 0.1% of Wetouch Technology shares are held by insiders. Comparatively, 16.0% of SS&C Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Wetouch Technology and SS&C Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wetouch Technology	$45.14 million	0.37	$7.16 million	$0.71	1.96
SS&C Technologies	$6.27 billion	2.59	$796.90 million	$3.23	20.90

SS&C Technologies has higher revenue and earnings than Wetouch Technology. Wetouch Technology is trading at a lower price-to-earnings ratio than SS&C Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

SS&C Technologies beats Wetouch Technology on 14 of the 15 factors compared between the two stocks.

About Wetouch Technology

Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, and internationally. The company offers various touch panels, including glass-glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; glass-film-film products that are used in GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; plastic-glass for use in GPS/entertainment panels, motor vehicle GPS, smart home products, robots, and charging stations; and glass-films used in industrial HMI. Wetouch Technology Inc. was founded in 2011 and is based in Meishan, China.

About SS&C Technologies

SS&C Technologies Holdings, Inc. engages in the development and provision of software solutions to the financial services and healthcare industries. It operates through the following geographical segments: United States, Europe, Middle East and Africa, Asia Pacific and Japan, Canada, and the Americas, excluding the United States and Canada. Its products include advent genesis, antares, asset allocators, AWD, axys, BANC mall, BRIX, DST vision, evare, lightning, and moxy. The company was founded by William Charles Stone in March 1986 and is headquartered in Windsor, CT.