Grid Dynamics (NASDAQ:GDYN) vs. Endava (NYSE:DAVA) Head-To-Head Analysis

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

Analyst Ratings

This is a breakdown of recent ratings for Endava and Grid Dynamics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endava	3	4	2	0	1.89
Grid Dynamics	2	2	4	0	2.25

Endava presently has a consensus price target of $7.43, suggesting a potential upside of 165.02%. Grid Dynamics has a consensus price target of $9.40, suggesting a potential upside of 43.51%. Given Endava’s higher probable upside, equities analysts plainly believe Endava is more favorable than Grid Dynamics.

Profitability

This table compares Endava and Grid Dynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Endava	-57.01%	2.58%	1.45%
Grid Dynamics	1.27%	1.20%	1.05%

Institutional & Insider Ownership

62.2% of Endava shares are owned by institutional investors. Comparatively, 71.2% of Grid Dynamics shares are owned by institutional investors. 18.8% of Endava shares are owned by company insiders. Comparatively, 6.5% of Grid Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Endava and Grid Dynamics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endava	$999.23 million	0.16	$27.45 million	($10.51)	-0.27
Grid Dynamics	$411.83 million	1.33	$9.67 million	$0.05	131.00

Endava has higher revenue and earnings than Grid Dynamics. Endava is trading at a lower price-to-earnings ratio than Grid Dynamics, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Endava has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

About Endava

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. The company also provides automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, telemetry and monitoring, organizational optimization, and transaction advisory services. Endava plc was founded in 2000 and is headquartered in London, the United Kingdom.

About Grid Dynamics

Grid Dynamics Holdings, Inc., together with its subsidiaries, provides technology consulting, platform and product engineering, and analytics services in North America, Europe, and internationally. It offers cloud platform and product engineering services, such as architecting, designing, and building scalable and secure cloud-based platforms and business applications; and AI/machine learning and data platform engineering services that build platforms to facilitate batch and streaming data ingestion, quality governance, orchestration, semantic modeling, observability, and analysis at scale. The company provides digital engagement services, including digital ecosystem design and implementation; and supply chain, Internet of Thing, and advanced manufacturing, which focuses on transforming traditional operations into smart and connected ecosystems. It serves customers that operate in the tech, media, telecommunications, retail, consumer packaged goods, manufacturing, and finance industries. The company was formerly known as ChaSerg Technology Acquisition Corp. and changed its name to Grid Dynamics Holdings, Inc. Grid Dynamics Holdings, Inc. was founded in 2006 and is headquartered in San Ramon, California.