Paltalk (NASDAQ:PALT – Get Free Report) and WNS (NYSE:WNS – Get Free Report) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.
Volatility and Risk
Paltalk has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, WNS has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.
Institutional and Insider Ownership
30.2% of Paltalk shares are owned by institutional investors. Comparatively, 99.5% of WNS shares are owned by institutional investors. 15.5% of Paltalk shares are owned by company insiders. Comparatively, 2.0% of WNS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paltalk | 0 | 0 | 1 | 0 | 3.00 |
| WNS | 0 | 0 | 7 | 0 | 3.00 |
WNS has a consensus price target of $100.00, indicating a potential upside of 54.49%. Given WNS’s higher possible upside, analysts plainly believe WNS is more favorable than Paltalk.
Profitability
This table compares Paltalk and WNS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Paltalk | -19.62% | -10.27% | -8.56% |
| WNS | 10.71% | 21.61% | 11.58% |
Valuation & Earnings
This table compares Paltalk and WNS’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Paltalk | $10.99 million | 1.87 | -$3.41 million | ($0.24) | -9.29 |
| WNS | $1.26 billion | 2.44 | $137.31 million | $2.67 | 24.24 |
WNS has higher revenue and earnings than Paltalk. Paltalk is trading at a lower price-to-earnings ratio than WNS, indicating that it is currently the more affordable of the two stocks.
Summary
WNS beats Paltalk on 12 of the 13 factors compared between the two stocks.
About Paltalk
Paltalk, Inc., together with its subsidiaries, develops communications software and multimedia social applications worldwide. It offers consumer applications, which include Paltalk, Camfrog, and Tinychat for live video chat; and owns and operates Vumber, a telecommunications services provider that enables users to have multiple phone numbers in any area code through which calls can be forwarded to a user's existing cell phone or land line telephone number. The company provides ManyCam, a live streaming software and virtual camera that allows users to deliver professional live videos on streaming platforms, video conferencing applications, and distance learning tools; and product payment options, where users can pay by credit card, PayPal, western union, check, local e-wallet providers, or complete an in-app purchase through the Apple App Store or Google Play Store for Android users. In addition, it offers technology services, such as development, integration, engineering, licensing, other services. The company was formerly known as PeerStream, Inc. and changed its name to Paltalk, Inc. in May 2020. Paltalk, Inc. was incorporated in 2005 and is based in Jericho, New York.
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.
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