Wipro (NYSE:WIT – Get Free Report) and VNET Group (NASDAQ:VNET – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
Insider and Institutional Ownership
2.4% of Wipro shares are owned by institutional investors. Comparatively, 72.8% of VNET Group shares are owned by institutional investors. 1.0% of Wipro shares are owned by company insiders. Comparatively, 12.1% of VNET Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Wipro and VNET Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wipro | 3 | 1 | 0 | 0 | 1.25 |
| VNET Group | 1 | 1 | 4 | 0 | 2.50 |
Profitability
This table compares Wipro and VNET Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wipro | 13.93% | 15.40% | 9.67% |
| VNET Group | -22.29% | -36.25% | -4.43% |
Earnings & Valuation
This table compares Wipro and VNET Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wipro | $9.87 billion | 1.66 | $1.41 billion | $0.13 | 12.73 |
| VNET Group | $1.42 billion | 1.26 | -$36.01 million | ($1.42) | -4.68 |
Wipro has higher revenue and earnings than VNET Group. VNET Group is trading at a lower price-to-earnings ratio than Wipro, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Wipro has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, VNET Group has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.
Summary
Wipro beats VNET Group on 9 of the 14 factors compared between the two stocks.
About Wipro
Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.
About VNET Group
VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.
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