Computer Programs and Systems (CPSI), Endava: Review
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: 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 per cent dividend yield. An assessment of the profit illustrates that Computer Programs and Systems spends 30.1 per cent of its 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 per cent
- Return on Equity: 16.74 per cent
- Return on Assets: 7.43 per cent
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 per cent upside indicated. For Endava, the consensus price target is $27.80 and the potential upside is 10.54 per cent. 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 analysed 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 the 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 per cent
- Stock Owned by Company Insiders: 4.8 per cent
Endava
- Stock Owned by Institutional Investors: 5.3 per cent
It’s of note that higher institutional investors, indicates that insiders believe the firm’s growth is inevitable.
Conclusion
After assessing all factors, Endava stock is stronger in 9 out of 15 categories.