Sapient Corp (NASDAQ: SAPE) and Quality Systems (NASDAQ:QSII) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Valuation and Earnings

This table compares Sapient Corp and Quality Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sapient Corp N/A N/A N/A N/A N/A
Quality Systems $518.34 million 1.93 $61.27 million $0.36 43.83

Quality Systems has higher revenue and earnings than Sapient Corp.

Insider and Institutional Ownership

66.9% of Quality Systems shares are held by institutional investors. 17.9% of Quality Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Sapient Corp and Quality Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sapient Corp 0 0 0 0 N/A
Quality Systems 1 7 1 0 2.00

Quality Systems has a consensus price target of $15.30, suggesting a potential downside of 3.04%. Given Quality Systems’ higher probable upside, analysts plainly believe Quality Systems is more favorable than Sapient Corp.

Profitability

This table compares Sapient Corp and Quality Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sapient Corp 6.13% 14.00% 8.96%
Quality Systems 4.40% 15.49% 9.78%

Summary

Quality Systems beats Sapient Corp on 7 of the 8 factors compared between the two stocks.

Sapient Corp Company Profile

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).

Quality Systems Company Profile

Quality Systems, Inc. (QSI) primarily, through its NextGen Healthcare subsidiary, provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices. The Company operates through three segments: the NextGen Division, the RCM Services Division and the QSI Dental Division. It also provides implementation, training, support and maintenance for software and complementary services, such as revenue cycle management (RCM) and electronic data interchange (EDI). The Company’s clients include single and small practice physicians, networks of practices, such as physician hospital organizations (PHOs), management service organizations (MSOs), accountable care organizations (ACOs), ambulatory care centers, community health centers, and medical and dental schools.

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