Analyzing Thoughtworks (NASDAQ:TWKS) and X3 (NASDAQ:XTKG)

Thoughtworks (NASDAQ:TWKS) and X3 (NASDAQ:XTKG) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Volatility & Risk

Thoughtworks has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, X3 has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Insider & Institutional Ownership

32.8% of Thoughtworks shares are owned by institutional investors. Comparatively, 1.9% of X3 shares are owned by institutional investors. 2.3% of Thoughtworks shares are owned by company insiders. Comparatively, 23.9% of X3 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Thoughtworks and X3’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thoughtworks	$1.13 billion	0.77	-$68.66 million	($0.29)	-9.31
X3	$16.83 million	0.04	-$109.60 million	N/A	N/A

Thoughtworks has higher revenue and earnings than X3.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Thoughtworks and X3, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thoughtworks	1	6	2	0	2.11
X3	0	0	0	0	N/A

Thoughtworks presently has a consensus price target of $4.52, suggesting a potential upside of 67.46%. Given Thoughtworks’ higher possible upside, analysts plainly believe Thoughtworks is more favorable than X3.

Profitability

This table compares Thoughtworks and X3’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thoughtworks	-8.56%	-4.10%	-2.43%
X3	N/A	N/A	N/A

Summary

Thoughtworks beats X3 on 6 of the 11 factors compared between the two stocks.

About Thoughtworks

Thoughtworks Holding, Inc. provides technology consultancy services in North America, the Asia Pacific, Europe, and Latin America. The company's consultancy services integrate strategy, design, and software engineering to enable enterprises and technology disruptors to thrive as modern digital businesses. It offers enterprise modernization, platforms, and cloud services, including modernization strategy and execution, digital platform strategy and engineering organization transformation, cloud modernization, cloud-native application support and evolution, and platform assessment and remediation; and customer experience, product, and design services comprising idea to market, customer experience strategy, product management transformation, and product design and delivery. The company also provides data and artificial intelligence services, such as data strategy, intelligent products, data platforms and data mesh, continuous delivery for machine learning, and data governance; digital transformation and operations services, which include delivery transformation, digital fluency, organization transformation, value-driven portfolio management, technology strategy, executive advisory, and digital foundations training; and DAMO managed services. It serves its clients in various industry verticals, including technology and business services; energy, public, and health services; retail and consumer; financial services and insurance; and automotive, travel, and transportation. The company was incorporated in 1993 and is headquartered in Chicago, Illinois.

About X3

X3 Holdings Co Ltd. provides technology solutions and services worldwide. The company offers Global Trade Platform, a digital platform for trading partners, service providers, and government authorities. It also engages in bitcoin cryptomining operations, renewable energy projects, and agriculture technologies and trading. The company was formerly known as Powerbridge Technologies Co., Ltd. and changed its name to X3 Holdings Co Ltd. in January 2024. X3 Holdings Co Ltd. was founded in 1997 and is headquartered in Singapore.