Glu Mobile (NYSE: DAVA) and Endava (NYSE:DAVA) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Earnings and Valuation

This table compares Glu Mobile and Endava’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Glu Mobile $286.83 million 3.74 -$97.57 million ($0.51) -14.84
Endava N/A N/A N/A N/A N/A

Endava has lower revenue, but higher earnings than Glu Mobile.

Insider & Institutional Ownership

54.2% of Glu Mobile shares are held by institutional investors. 5.8% of Glu Mobile shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Glu Mobile and Endava, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Glu Mobile 0 2 4 0 2.67
Endava 0 3 2 0 2.40

Glu Mobile currently has a consensus target price of $6.04, suggesting a potential downside of 20.19%. Endava has a consensus target price of $28.40, suggesting a potential upside of 7.58%. Given Endava’s higher possible upside, analysts clearly believe Endava is more favorable than Glu Mobile.

Profitability

This table compares Glu Mobile and Endava’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Glu Mobile -18.88% -26.30% -14.68%
Endava N/A N/A N/A

Summary

Glu Mobile beats Endava on 5 of the 9 factors compared between the two stocks.

About Glu Mobile

Glu Mobile Inc. develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. The company publishes titles in four genres, including home d├ęcor, sports and action, fashion and celebrity, and time management. It creates games based on its own brands, including Contract Killer, Cooking Dash, Covet Fashion, Deer Hunter, Design Home, and QuizUp. The company also creates games based on third-party licensed brands, such as Restaurant Dash with Gordon Ramsay and Kim Kardashian; and Hollywood, MLB Tap Sports Baseball, and Racing Rivals. It markets, sells, and distributes its games primarily through direct-to-consumer digital storefronts worldwide. The company was formerly known as Sorrent, Inc. and changed its name to Glu Mobile Inc. in May 2005. Glu Mobile Inc. was incorporated in 2001 and is headquartered in San Francisco, California.

About Endava

Endava Plc engages in the provision of technology services which involves collaborations with its clients. The firm works with finance, insurance, telecommunications, media, technology, and retail companies. The company was founded by John Cotterell in 2000 and is headquartered in London, the United Kingdom.

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