WNS (NYSE:WNS) versus Fair Isaac (NYSE:FICO) Head to Head Analysis

WNS (NYSE:WNS) and Fair Isaac (NYSE:FICO) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Institutional & Insider Ownership

97.4% of WNS shares are held by institutional investors. Comparatively, 85.8% of Fair Isaac shares are held by institutional investors. 2.0% of WNS shares are held by insiders. Comparatively, 3.5% of Fair Isaac shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

WNS has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Fair Isaac has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Profitability

This table compares WNS and Fair Isaac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WNS	10.03%	22.25%	11.58%
Fair Isaac	30.66%	-53.40%	28.63%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for WNS and Fair Isaac, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WNS	0	3	5	0	2.63
Fair Isaac	0	4	9	0	2.69

WNS currently has a consensus price target of $62.25, suggesting a potential downside of 6.33%. Fair Isaac has a consensus price target of $2,088.15, suggesting a potential upside of 11.87%. Given Fair Isaac’s stronger consensus rating and higher probable upside, analysts clearly believe Fair Isaac is more favorable than WNS.

Earnings and Valuation

This table compares WNS and Fair Isaac”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WNS	$1.32 billion	2.34	$140.15 million	$2.86	23.24
Fair Isaac	$1.78 billion	25.67	$512.81 million	$21.79	85.66

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

Summary

Fair Isaac beats WNS on 12 of the 14 factors compared between the two stocks.

About WNS

WNS (Holdings) Limited, a business process management (BPM) company, provides data, voice, analytical, and business transformation services worldwide. The company operates through TSLU, MRHP, HCLS, and BFSI segments. It engages in diversified business, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunication; travel and leisure, utilities, shipping, and logistics; healthcare and life sciences; banking, financial services, and insurance; and Hi-tech and professional services, as well as procurement. 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 digital transformation and consulting 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, as well as accident management services. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.

About Fair Isaac

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. It offers FICO Customer Analytics, FICO Responsible AI, FICO Advisors, FICO Business Outcome Simulator, FICO Forecaster, FICO TRIAD Customer Manager, FICO Blaze Advisor, FICO Xpress Optimization, FICO Falcon Fraud Manager, FICO Analytics Workbench, FICO Data Orchestrator, FICO DMP Streaming, FICO Decision Optimizer, and FICO Strategy Director, as well as software implementation and configuration services. The company markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.