Sapiens International (NASDAQ:SPNS – Get Free Report) and Simulations Plus (NASDAQ:SLP – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
30.7% of Sapiens International shares are owned by institutional investors. Comparatively, 78.1% of Simulations Plus shares are owned by institutional investors. 16.0% of Sapiens International shares are owned by insiders. Comparatively, 19.4% of Simulations Plus shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for Sapiens International and Simulations Plus, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sapiens International | 1 | 2 | 1 | 0 | 2.00 |
| Simulations Plus | 1 | 6 | 3 | 1 | 2.36 |
Risk and Volatility
Sapiens International has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Simulations Plus has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.
Profitability
This table compares Sapiens International and Simulations Plus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sapiens International | 11.40% | 16.08% | 10.86% |
| Simulations Plus | -81.74% | 13.27% | 12.44% |
Earnings and Valuation
This table compares Sapiens International and Simulations Plus”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sapiens International | $542.38 million | 4.49 | $72.18 million | $1.14 | 38.11 |
| Simulations Plus | $79.18 million | 4.92 | -$64.72 million | ($3.22) | -6.00 |
Sapiens International has higher revenue and earnings than Simulations Plus. Simulations Plus is trading at a lower price-to-earnings ratio than Sapiens International, indicating that it is currently the more affordable of the two stocks.
Summary
Simulations Plus beats Sapiens International on 9 of the 15 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 Simulations Plus
Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. The company operates through two segments, Software and Services. It offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. The company also provides products based on mechanistic and mathematical models, such as DILIsym, NAFLDsym, ILDsym, RENAsym, IPFsym, and MITOsym products. In addition, it offers Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as MonolixSuite products for modeling and simulation that allows for population analyses, rapid clinical trial data analyses, and regulatory submissions. Further, the company provides clinical-pharmacology-based consulting services, which includes population pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, clinical trial simulations, data programming, and technical writing services in support of regulatory submissions; and early drug discovery services. Additionally, it offers creative and insightful consulting services to support its quantitative systems pharmacology/quantitative systems toxicology modelling. The company serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies, as well as academic and regulatory agencies. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California.
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