Financial Analysis: CLPS Incorporation (NASDAQ:CLPS) versus Endava (NYSE:DAVA)

Endava (NYSE:DAVA) and CLPS Incorporation (NASDAQ:CLPS) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Insider & Institutional Ownership

62.2% of Endava shares are owned by institutional investors. Comparatively, 0.2% of CLPS Incorporation shares are owned by institutional investors. 18.8% of Endava shares are owned by company insiders. Comparatively, 58.7% of CLPS Incorporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Endava and CLPS Incorporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endava	1	6	3	0	2.20
CLPS Incorporation	1	0	0	0	1.00

Endava presently has a consensus target price of $15.71, suggesting a potential upside of 243.11%. Given Endava’s stronger consensus rating and higher probable upside, equities analysts plainly believe Endava is more favorable than CLPS Incorporation.

Volatility & Risk

Endava has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, CLPS Incorporation has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Earnings and Valuation

This table compares Endava and CLPS Incorporation”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endava	$999.23 million	0.26	$27.45 million	($0.11)	-41.64
CLPS Incorporation	$164.23 million	0.18	-$7.05 million	N/A	N/A

Endava has higher revenue and earnings than CLPS Incorporation.

Profitability

This table compares Endava and CLPS Incorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Endava	-0.51%	5.16%	3.23%
CLPS Incorporation	N/A	N/A	N/A

Summary

Endava beats CLPS Incorporation on 10 of the 12 factors compared between the two stocks.

About Endava

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. The company also provides automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, telemetry and monitoring, organizational optimization, and transaction advisory services. Endava plc was founded in 2000 and is headquartered in London, the United Kingdom.

About CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.