Head-To-Head Review: OptimizeRx (NASDAQ:OPRX) & WNS (NYSE:WNS)

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

Risk & Volatility

WNS has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, OptimizeRx has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Institutional & Insider Ownership

97.4% of WNS shares are owned by institutional investors. Comparatively, 76.5% of OptimizeRx shares are owned by institutional investors. 2.0% of WNS shares are owned by insiders. Comparatively, 6.1% of OptimizeRx shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WNS	9.39%	22.76%	11.93%
OptimizeRx	-27.41%	-4.92%	-3.41%

Valuation & Earnings

This table compares WNS and OptimizeRx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WNS	$1.31 billion	1.66	$140.15 million	$2.60	17.51
OptimizeRx	$88.18 million	0.99	-$17.57 million	($1.33)	-3.57

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for WNS and OptimizeRx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WNS	0	3	3	0	2.50
OptimizeRx	0	1	6	0	2.86

WNS currently has a consensus price target of $60.33, indicating a potential upside of 32.51%. OptimizeRx has a consensus price target of $10.42, indicating a potential upside of 119.30%. Given OptimizeRx’s stronger consensus rating and higher probable upside, analysts plainly believe OptimizeRx is more favorable than WNS.

Summary

WNS beats OptimizeRx on 9 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 OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.