Vasta Platform (NASDAQ:VSTA) and Wipro (NYSE:WIT) Critical Analysis

Vasta Platform (NASDAQ:VSTA) and Wipro (NYSE:WIT) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Profitability

This table compares Vasta Platform and Wipro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vasta Platform	27.31%	1.53%	1.06%
Wipro	13.93%	15.40%	9.67%

Valuation and Earnings

This table compares Vasta Platform and Wipro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vasta Platform	$1.74 billion	0.23	$90.19 million	$1.02	4.80
Wipro	$949.68 billion	0.02	$1.41 billion	$0.13	12.73

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

Analyst Ratings

This is a summary of current ratings for Vasta Platform and Wipro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vasta Platform	1	1	0	0	1.50
Wipro	3	1	0	0	1.25

Wipro has a consensus price target of $1.70, indicating a potential upside of 2.72%. Given Wipro’s higher possible upside, analysts plainly believe Wipro is more favorable than Vasta Platform.

Risk and Volatility

Vasta Platform has a beta of -0.29, meaning that its share price is 129% less volatile than the S&P 500. Comparatively, Wipro has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership

15.8% of Vasta Platform shares are held by institutional investors. Comparatively, 2.4% of Wipro shares are held by institutional investors. 2.0% of Vasta Platform shares are held by insiders. Comparatively, 1.0% of Wipro shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Wipro beats Vasta Platform on 7 of the 13 factors compared between the two stocks.

About Vasta Platform

Vasta Platform Limited provides educational printed and digital solutions to private schools operating in the K-12 education sector in Brazil. The company offers digital and printed textbooks, teacher handbooks, exercise books, multidisciplinary subject books, and student evaluations; and PAR platform that allows schools to select their preferred books and materials and follow their own specific teaching methods. It also provides traditional learning systems under the Anglo, Pitágoras, Rede Cristã de Educação, Maxi Ético, Fibonacci, Mackenzie, and Amplia brands; ongoing training for educators; and services to partner schools, including consulting services for school management and the organization of events, and a proprietary and differentiated evaluation system for partner schools and their students. In addition, the company offers Plurall that provides a digital learning experience and allows for tailor-made adjustments for each school; Plurall Maestro that develops digital solutions to help educators in planning and conducting classes; PROFS, a teacher training program; O Líder em Mim, a program with content, methodology, teaching material, and training to develop leadership; English Stars, an English educational platform; EduAll, a bilingual program to enhance its current solutions; Plurall Olímpico, a content for scientific competitions; MindMakers to develop leadership, collaboration, and persistence through multidisciplinary problem-solving exercises; Matific that provides interactive learning environments and adaptable worksheets; Plurall Store; Plurall Adapta for adaptive learning sessions; Plurall MeuProf to connect students with professors for private tutoring; Prepara to prepare students for external assessments; Leader in Me to develop socio-emotional competencies of K12 students; Education Systems, a structured teaching system for K12 students and teachers; and Prepara ENEM. Vasta Platform Limited was founded in 1966 and is based in São Paulo, Brazil.

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.