Sapiens International Corporation N.V. (NASDAQ: SPNS) and Apptio (NASDAQ:APTI) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Profitability

This table compares Sapiens International Corporation N.V. and Apptio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sapiens International Corporation N.V. 1.39% 6.77% 4.41%
Apptio -17.36% -41.76% -15.95%

Insider & Institutional Ownership

11.7% of Sapiens International Corporation N.V. shares are owned by institutional investors. Comparatively, 45.3% of Apptio shares are owned by institutional investors. 16.0% of Sapiens International Corporation N.V. shares are owned by company insiders. Comparatively, 43.2% of Apptio shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Sapiens International Corporation N.V. and Apptio’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sapiens International Corporation N.V. $239.18 million 2.27 $14.79 million $0.07 157.59
Apptio $174.10 million 4.09 -$22.22 million ($1.19) -14.96

Sapiens International Corporation N.V. has higher revenue and earnings than Apptio. Apptio is trading at a lower price-to-earnings ratio than Sapiens International Corporation N.V., indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Sapiens International Corporation N.V. and Apptio, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sapiens International Corporation N.V. 0 0 4 0 3.00
Apptio 0 2 6 0 2.75

Sapiens International Corporation N.V. presently has a consensus target price of $16.00, suggesting a potential upside of 45.06%. Apptio has a consensus target price of $23.50, suggesting a potential upside of 32.02%. Given Sapiens International Corporation N.V.’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Sapiens International Corporation N.V. is more favorable than Apptio.

Summary

Sapiens International Corporation N.V. beats Apptio on 8 of the 12 factors compared between the two stocks.

About Sapiens International Corporation N.V.

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.

About Apptio

Apptio, Inc. is a provider of technology business management (TBM) solutions. The Company’s cloud-based platform and software as a service (SaaS) applications enable information technology (IT) leaders to analyze, optimize and plan technology investments, and benchmark the financial and operational performance against peers. It operates in the United States, the United Kingdom, Germany, Denmark, the Netherlands, Australia, Canada, France and Singapore. Its TBM solutions consist of a cloud-based platform and SaaS applications, which include Cost Transparency, IT Benchmarking, Business Insights, Bill of IT and IT Planning. It serves a range of industries, including financial services, professional services, technology, energy, consumer goods, manufacturing, healthcare, media, retail and transportation, as well as federal and state government agencies. Its cloud-based data and analytics platform aggregates, cleanses and correlates customer data from a range of disparate sources.

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