Lyft (NASDAQ:LYFT – Get Free Report) and WNS (NYSE:WNS – Get Free Report) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Profitability
This table compares Lyft and WNS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lyft | -37.33% | -151.57% | -20.57% |
| WNS | 10.71% | 21.61% | 11.58% |
Institutional and Insider Ownership
73.6% of Lyft shares are held by institutional investors. 3.2% of Lyft shares are held by insiders. Comparatively, 2.0% of WNS shares are held by 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lyft | 1 | 27 | 6 | 0 | 2.15 |
| WNS | 0 | 0 | 7 | 0 | 3.00 |
Lyft presently has a consensus price target of $14.48, indicating a potential upside of 33.50%. WNS has a consensus price target of $100.00, indicating a potential upside of 48.32%. Given WNS’s stronger consensus rating and higher probable upside, analysts clearly believe WNS is more favorable than Lyft.
Earnings and Valuation
This table compares Lyft and WNS’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lyft | $4.10 billion | 1.00 | -$1.58 billion | ($4.39) | -2.47 |
| WNS | $1.22 billion | 2.65 | $137.31 million | $2.67 | 25.25 |
WNS has lower revenue, but higher earnings than Lyft. Lyft is trading at a lower price-to-earnings ratio than WNS, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Lyft has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, WNS has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Summary
WNS beats Lyft on 10 of the 14 factors compared between the two stocks.
About Lyft
Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. The company operates multimodal transportation networks that offer riders personalized and on-demand access to various mobility options. It provides Ridesharing Marketplace, which connects drivers with riders; Express Drive, a flexible car rentals program for drivers; Lyft Rentals that provides vehicles for long-distance trips; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. The company also integrates third-party public transit data into the Lyft app to offer riders various transportation options. In addition, it offers access to autonomous vehicles; centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.
About WNS
WNS (Holdings) Limited, a business process management (BPM) company, provides data, voice, analytical, and business transformation services worldwide. The company operates through two segments, WNS Global BPM and WNS Auto Claims BPM. It offers industry-specific services to clients primarily in insurance; diversified businesses, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunication; travel and leisure; healthcare; utilities; shipping and logistics; Hi-tech and professional services; and banking and financial services. In addition, the company provides a range of services, such as finance and accounting, customer experience, research and analytics, technology, legal, and human resources outsourcing services. Further, it offers transformation services designed to allow its clients to enhance productivity, manage changes in the business environment, and leverage business knowledge to increase market competitiveness. Additionally, the company 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 comprising credit hire and repair. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.
Receive News & Ratings for Lyft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lyft and related companies with MarketBeat.com's FREE daily email newsletter.
