MicroStrategy (NASDAQ: MSTR) and Sapiens International Corporation N.V. (NASDAQ:SPNS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
This is a breakdown of recent ratings and target prices for MicroStrategy and Sapiens International Corporation N.V., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sapiens International Corporation N.V.||0||0||5||0||3.00|
MicroStrategy currently has a consensus price target of $170.00, suggesting a potential upside of 35.67%. Sapiens International Corporation N.V. has a consensus price target of $15.00, suggesting a potential upside of 14.77%. Given MicroStrategy’s higher probable upside, equities analysts plainly believe MicroStrategy is more favorable than Sapiens International Corporation N.V..
Insider and Institutional Ownership
76.3% of MicroStrategy shares are owned by institutional investors. Comparatively, 11.7% of Sapiens International Corporation N.V. shares are owned by institutional investors. 21.8% of MicroStrategy 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 company will outperform the market over the long term.
This table compares MicroStrategy and Sapiens International Corporation N.V.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sapiens International Corporation N.V.||1.39%||6.77%||4.41%|
Earnings & Valuation
This table compares MicroStrategy and Sapiens International Corporation N.V.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MicroStrategy||$511.19 million||2.31||$109.23 million||$7.24||17.31|
|Sapiens International Corporation N.V.||$239.18 million||2.68||$14.79 million||$0.07||186.74|
MicroStrategy has higher revenue and earnings than Sapiens International Corporation N.V.. MicroStrategy 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.
Volatility and Risk
MicroStrategy has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Sapiens International Corporation N.V. has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.
MicroStrategy beats Sapiens International Corporation N.V. on 9 of the 14 factors compared between the two stocks.
MicroStrategy Incorporated is a provider of enterprise software platforms around the world. The Company is engaged in the design, development, marketing and sales of its software platform through licensing arrangements, and cloud-based subscriptions and related services. It focuses on providing enterprise customers with software platform and services for deploying intelligence applications. Its platform, MicroStrategy 10, consolidates analytics and mobility in a single platform, available both as on-premise software and as a hosted service offering in MicroStrategy Cloud. Its enterprise platform combines business intelligence functionality with data discovery, mobile analytics and identity intelligence generated by digital credentials. MicroStrategy 10 consists of MicroStrategy Analytics, MicroStrategy Mobile and Usher. MicroStrategy Analytics offers solutions to organizations to analyze a range of data and distribute actionable business insight throughout an enterprise.
About Sapiens International Corporation N.V.
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.
Receive News & Ratings for MicroStrategy Incorporated Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MicroStrategy Incorporated and related companies with MarketBeat.com's FREE daily email newsletter.