Computer Programs and Systems and Endava are two small-cap companies within the medical industry. The purpose of this review is to outline which business is the stronger of the two. The factors being compared are: the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, and risk and earning

Dividends

In the case of Computer Programs and Systems, an annual dividend of $0.40 is paid on a per-share basis, with a 1.6 percent dividend yield. An assessment of the profit illustrates that Computer Programs and Systems spend 30.1 percent of their earnings on dividends. Endava by comparison does not pay any dividends.

Profitability

Three factors will be assessed and compared: net margins, return on equity and return on assets.

Computer Programs and Systems:

  • Net Margins: -4.02 percent
  • Return on Equity: 16.74 percent
  • Return on Assets: 7.43 percent

In the case of Endava, no data is available hence a comparison isn’t possible.

Analyst Recommendations

The following provides a summarised account of recently made recommendations and price targets for the two firms, found on MarketBeat.com

Computer Programs and Systems

  • Sell Ratings: 1
  • Hold Ratings: 5
  • Buy Ratings: 1
  • Strong Buy Ratings: 0
  • Final Rating Score: 2.00

Endava

  • Sell Ratings: 0
  • Hold Ratings: 3
  • Buy Ratings: 2
  • Strong Buy Ratings: 0
  • Final Rating Score: 2.40

The consensus price target for Computer Programs and Systems is currently at $27.00, with a 5.63 percent upside indicated. For Endava, the consensus price target is $27.80 and the potential upside is 10.54 percent. Comparing the available information allows us to understand that according to analysts, Endava is stronger due to its consensus rating and probable upside being higher.

Earnings and Valuation

The factors being analyzed are: gross revenue, earnings per share, and valuation

Computer Programs and Systems

  • Gross Revenue: $276.93m
  • Sales Ratio: 1.30
  • Net Income: -$17.10m
  • Earnings per Share: $1.33
  • Earnings Ratio: 19.22

Endava

  • Gross Revenue: $293.10m
  • Sales Ratio: 4.55
  • Net Income: $25.55m
  • Earnings per Share: $0.71
  • Earnings Ratio: 35.42

Endava has a higher profit, while Computer Programs and Systems is the more affordable stock option.

Institutional and Insider Ownership

Computer Programs and Systems

  • Stock Owned by Institutional Investors: 84.5 percent
  • Stock Owned by Company Insiders: 4.8 percent

Endava

  • Stock Owned by Institutional Investors: 5.3 percent

It’s of note that higher institutional investors indicate that insiders believe the firm’s growth is inevitable.

Conclusion

After assessing all factors, Endava stock is stronger in 9 out of 15 categories.