QAD (QADB) & Sapiens International Corporation N.V. (SPNS) Head to Head Review

QAD (NASDAQ: QADB) and Sapiens International Corporation N.V. (NASDAQ:SPNS) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Risk and Volatility

QAD has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Sapiens International Corporation N.V. has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Insider and Institutional Ownership

1.8% of QAD shares are owned by institutional investors. Comparatively, 11.8% of Sapiens International Corporation N.V. shares are owned by institutional investors. 67.4% of QAD shares are owned by insiders. Comparatively, 16.0% of Sapiens International Corporation N.V. shares are owned 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.

Earnings and Valuation

This table compares QAD and Sapiens International Corporation N.V.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
QAD $290.14 million 2.03 $10.69 million ($0.94) -32.55
Sapiens International Corporation N.V. $239.18 million 2.85 $14.79 million $0.07 198.31

Sapiens International Corporation N.V. has higher revenue, but lower earnings than QAD. QAD is trading at a lower price-to-earnings ratio than Sapiens International Corporation N.V., indicating that it is currently the more affordable of the two stocks.

Dividends

QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Sapiens International Corporation N.V. does not pay a dividend. QAD pays out -25.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings for QAD and Sapiens International Corporation N.V., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QAD 0 0 1 0 3.00
Sapiens International Corporation N.V. 0 0 4 0 3.00

QAD presently has a consensus price target of $33.00, suggesting a potential upside of 7.84%. Sapiens International Corporation N.V. has a consensus price target of $15.00, suggesting a potential upside of 8.07%. Given Sapiens International Corporation N.V.’s higher possible upside, analysts clearly believe Sapiens International Corporation N.V. is more favorable than QAD.

Profitability

This table compares QAD and Sapiens International Corporation N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QAD -5.98% -0.48% -0.21%
Sapiens International Corporation N.V. 1.39% 6.77% 4.41%

Summary

Sapiens International Corporation N.V. beats QAD on 10 of the 14 factors compared between the two stocks.

QAD Company Profile

QAD Inc. (QAD) is a provider of vertically oriented enterprise software solutions for global manufacturing companies across the automotive, life sciences, consumer products, food and beverage, high technology and industrial products industries. QAD Enterprise Applications enables measurement and control of business processes and supports operational requirements, including financials, manufacturing, demand and supply chain planning, customer management, business intelligence and business process management. QAD delivers components of its solution for a range of mobile platforms. The Company’s mobile suite includes a requisition approval solution, a mobile business intelligence solution, mobile browse capability and mobile application monitoring tools to support system administrators. Its mobile browse capability allows users to view, filter and sort data accessible through QAD Browses within QAD Enterprise Applications using mobile devices.

Sapiens International Corporation N.V. Company Profile

Sapiens International Corporation N.V. (Sapiens) is a provider of software solutions for the insurance industry, with a focus on the financial services sector. The Company operates in provider of software solutions segment. Its software solutions portfolio consists of Life, Pension, Annuity and Retirement Solutions, including software solutions for the management of a range of products for life, pension, annuity and retirement; Property and Casualty/General Insurance Solutions, including a software suite of solutions, supporting a range of business lines, including personal, commercial and specialty lines, as well as a solution for the management of reinsurance contracts; Sapiens DECISION, which is a business decision management solution, and Technology-Based Solutions, such as Sapiens eMerge. Its services include project delivery and implementation, business and technical consulting related to its products, project and program management, training and user acceptance testing.

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