Reviewing Sapient (SAPE) & Manhattan Associates (MANH)

Manhattan Associates (NASDAQ: MANH) and Sapient (NASDAQ:SAPE) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Volatility and Risk

Manhattan Associates has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Sapient has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Manhattan Associates and Sapient, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manhattan Associates 0 2 1 0 2.33
Sapient 0 0 0 0 N/A

Manhattan Associates currently has a consensus target price of $55.00, suggesting a potential upside of 31.55%. Given Manhattan Associates’ higher probable upside, equities research analysts clearly believe Manhattan Associates is more favorable than Sapient.

Profitability

This table compares Manhattan Associates and Sapient’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manhattan Associates 19.59% 72.02% 40.06%
Sapient 6.13% 14.00% 8.96%

Earnings and Valuation

This table compares Manhattan Associates and Sapient’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manhattan Associates $594.60 million 4.78 $116.48 million $1.68 24.89
Sapient N/A N/A N/A $0.57 43.82

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

Summary

Manhattan Associates beats Sapient on 7 of the 9 factors compared between the two stocks.

About Manhattan Associates

Manhattan Associates, Inc. (Manhattan) is a developer and provider of supply chain commerce solutions. The Company operates through three geographical segments: the Americas, Europe, Middle East and Africa (EMEA), and the Asia Pacific (APAC). It is engaged in developing, selling, deploying, servicing and maintaining software solutions designed to manage supply chains, inventory and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers and other organizations. Its solutions consist of software, services and hardware, which coordinate people, workflows, assets, events and tasks across the functions linked in a supply chain from planning through execution. Its supply chain solutions consist of three components: Distribution Management, Transportation Management and Visibility. Its Omni-Channel Solutions include Omni-Channel Central Solutions and Omni-Channel Local Solutions. Its Inventory solutions include Inventory Optimization and Planning.

About Sapient

Sapient Corporation (Sapient) is a global services company, which helps clients leverage marketing and technology to transform their businesses. The Company operates in three business units: SapientNitro, Sapient Global Markets, and Sapient Government Services. SapientNitro provides integrated marketing and creative services, Web and interactive development, advertising, media planning and buying, strategic planning and marketing analytics, multi-channel commerce strategy and solutions, including a focus on mobile, and content and asset management strategies and solutions. Through this business unit, it combines multi-channel marketing and commerce. Sapient Global Markets provides integrated advisory, program management, analytics, technology and operations services to capital and commodity markets. Sapient Government Services provides consulting, technology, and marketing services to the United States government agencies and non-governmental organizations (NGOs).

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