Benefitfocus (BNFT) vs. Sapiens International (SPNS) Financial Review
Benefitfocus (NASDAQ: BNFT) and Sapiens International (NASDAQ:SPNS) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.
This table compares Benefitfocus and Sapiens International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Benefitfocus and Sapiens International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Benefitfocus currently has a consensus price target of $39.88, indicating a potential upside of 46.60%. Sapiens International has a consensus price target of $15.00, indicating a potential upside of 9.97%. Given Benefitfocus’ higher probable upside, research analysts clearly believe Benefitfocus is more favorable than Sapiens International.
Valuation and Earnings
This table compares Benefitfocus and Sapiens International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Benefitfocus||$248.19 million||3.42||-$6.36 million||($0.92)||-29.57|
|Sapiens International||$239.18 million||2.80||$14.79 million||$0.07||194.88|
Sapiens International has higher revenue, but lower earnings than Benefitfocus. Benefitfocus is trading at a lower price-to-earnings ratio than Sapiens International, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Benefitfocus has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Sapiens International has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
Institutional and Insider Ownership
85.4% of Benefitfocus shares are held by institutional investors. Comparatively, 11.8% of Sapiens International shares are held by institutional investors. 40.1% of Benefitfocus shares are held by company insiders. Comparatively, 16.0% of Sapiens International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Benefitfocus beats Sapiens International on 7 of the 13 factors compared between the two stocks.
Benefitfocus Company Profile
Benefitfocus, Inc. (Benefitfocus) is a provider of cloud-based benefits management platform for consumers, employers, insurance carriers and brokers. The Benefitfocus Platform allows how organizations and individuals shop for, enroll in, manage and exchange benefits. The Company operates through two business segments: Employer, which derives its revenue from customers that use the Company’s services for the provision of benefits to their employees, and administrators acting on behalf of employers, Carrier, which derives its revenue from insurance companies that provide coverage at their own risk. Its solutions support benefits plans, including healthcare, dental, life and disability insurance, and voluntary benefits plans, such as critical illness, supplemental income and wellness programs. It provides a multi-tenant cloud-based benefits management platform to the employer and carrier markets.
Sapiens International 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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