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

Analyst Ratings

This is a summary of recent ratings and target prices for Sapiens International Corporation N.V. and SAP SE, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sapiens International Corporation N.V. 0 0 4 0 3.00
SAP SE 1 4 12 0 2.65

Sapiens International Corporation N.V. presently has a consensus target price of $16.00, suggesting a potential upside of 46.79%. SAP SE has a consensus target price of $96.27, suggesting a potential downside of 8.15%. Given Sapiens International Corporation N.V.’s stronger consensus rating and higher possible upside, research analysts clearly believe Sapiens International Corporation N.V. is more favorable than SAP SE.

Valuation & Earnings

This table compares Sapiens International Corporation N.V. and SAP SE’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sapiens International Corporation N.V. $239.18 million 2.24 $14.79 million $0.07 155.74
SAP SE $27.24 billion 4.61 $6.79 billion $3.11 33.70

SAP SE has higher revenue and earnings than Sapiens International Corporation N.V.. SAP SE 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.

Profitability

This table compares Sapiens International Corporation N.V. and SAP SE’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%
SAP SE 14.81% 14.28% 8.20%

Risk & Volatility

Sapiens International Corporation N.V. has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, SAP SE has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Insider and Institutional Ownership

12.2% of Sapiens International Corporation N.V. shares are owned by institutional investors. Comparatively, 3.7% of SAP SE shares are owned by institutional investors. 16.0% of Sapiens International Corporation N.V. shares are owned by insiders. Comparatively, 7.4% of SAP SE 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.

Dividends

SAP SE pays an annual dividend of $0.98 per share and has a dividend yield of 0.9%. Sapiens International Corporation N.V. does not pay a dividend. SAP SE pays out 31.5% of its earnings in the form of a dividend.

Summary

SAP SE beats Sapiens International Corporation N.V. on 9 of the 16 factors compared between the two stocks.

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.

SAP SE Company Profile

SAP SE (SAP) is a software and service provider. The Company offers enterprise application software. The Company operates through two segments: Applications, Technology & Services segment, and the SAP Business Network segment. The Applications, Technology & Services segment is engaged in the sale of software licenses, subscriptions to its cloud applications, and related services (primarily support services and various professional services, and support services, as well as implementation services of its software products and education services on the use of its products). The SAP Business Network segment includes its cloud-based collaborative business networks and services relating to the SAP Business Network (including cloud applications, professional services and education services). Within the SAP Business Network segment, the Company markets and sells the cloud offerings developed by SAP Ariba, SAP Fieldglass and Concur.

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