Critical Contrast: Sapiens International (NASDAQ:SPNS) & Wetouch Technology (NASDAQ:WETH)

Sapiens International (NASDAQ:SPNS) and Wetouch Technology (NASDAQ:WETH) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sapiens International and Wetouch Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sapiens International	1	4	0	0	1.80
Wetouch Technology	0	1	0	0	2.00

Sapiens International currently has a consensus target price of $31.33, indicating a potential downside of 27.44%. Given Sapiens International’s higher probable upside, analysts plainly believe Sapiens International is more favorable than Wetouch Technology.

Valuation and Earnings

This table compares Sapiens International and Wetouch Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sapiens International	$549.04 million	4.40	$72.18 million	$1.22	35.39
Wetouch Technology	$42.28 million	0.73	$6.03 million	$0.62	4.18

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

Profitability

This table compares Sapiens International and Wetouch Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sapiens International	12.45%	16.59%	11.20%
Wetouch Technology	17.10%	N/A	N/A

Volatility & Risk

Sapiens International has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Wetouch Technology has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Institutional & Insider Ownership

30.7% of Sapiens International shares are held by institutional investors. 16.0% of Sapiens International shares are held by insiders. Comparatively, 0.1% of Wetouch Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Sapiens International beats Wetouch Technology on 11 of the 13 factors compared between the two stocks.

About Sapiens International

Sapiens International Corporation N.V. provides software solutions for the insurance industry in North America, the United Kingdom, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides various solutions for property and casualty commercial and personal lines, life and pensions, and reinsurance fields. It offers IDITSuite, an AI powered, end-to-end insurance software; DigitalSuite, a cloud-native, future-proof digital engagement platform; IDITGo, a pre-configured, data-enriched insurance launch and accelerator platform solutions; consultancy services for property and casualty commercial lines; and Tia Enterprise solution for customer engagement. The company also provides CoreSuite, an end-to-end cloud and digital PAS for individual and group products across life, health, wealth, and pensions; CustomerConnect, a dynamic self-service and persona-based portal to engage with insureds; AgentConnect, a portal for agents and brokers to focus on sales enablement, customer retention, and increasing customer value; and ReinsuranceMaster, a reinsurance automation software that provides insurers full financial control and flexibility over their entire reinsurance process. The company was founded in 1982 and is headquartered in Holon, Israel.

About Wetouch Technology

Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, and internationally. The company offers various touch panels, including glass-glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; glass-film-film products that are used in GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; plastic-glass for use in GPS/entertainment panels, motor vehicle GPS, smart home products, robots, and charging stations; and glass-films used in industrial HMI. Wetouch Technology Inc. was founded in 2011 and is based in Meishan, China.