Head to Head Review: C3.ai (NYSE:AI) vs. Wipro (NYSE:WIT)

C3.ai (NYSE:AI) and Wipro (NYSE:WIT) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Insider and Institutional Ownership

39.0% of C3.ai shares are owned by institutional investors. Comparatively, 2.4% of Wipro shares are owned by institutional investors. 26.5% of C3.ai shares are owned by insiders. Comparatively, 1.0% of Wipro shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares C3.ai and Wipro”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
C3.ai	$389.06 million	3.30	-$288.70 million	($3.15)	-2.80
Wipro	$9.87 billion	2.05	$1.41 billion	$0.14	13.82

Wipro has higher revenue and earnings than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than Wipro, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

C3.ai has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500. Comparatively, Wipro has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for C3.ai and Wipro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C3.ai	6	7	1	1	1.80
Wipro	1	2	0	0	1.67

C3.ai currently has a consensus price target of $15.93, suggesting a potential upside of 80.34%. Given C3.ai’s stronger consensus rating and higher possible upside, equities research analysts plainly believe C3.ai is more favorable than Wipro.

Profitability

This table compares C3.ai and Wipro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C3.ai	-141.35%	-55.40%	-45.00%
Wipro	14.25%	14.97%	9.68%

Summary

C3.ai beats Wipro on 8 of the 15 factors compared between the two stocks.

About C3.ai

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.

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.