Endava (NYSE:DAVA – Get Free Report) and Vasta Platform (NASDAQ:VSTA – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Profitability
This table compares Endava and Vasta Platform’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Endava | -57.01% | 2.48% | 1.40% |
| Vasta Platform | 27.31% | 1.53% | 1.06% |
Risk & Volatility
Endava has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Vasta Platform has a beta of -0.29, suggesting that its stock price is 129% less volatile than the S&P 500.
Valuation & Earnings
This table compares Endava and Vasta Platform”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Endava | $727.60 million | 0.16 | $27.45 million | ($10.51) | -0.20 |
| Vasta Platform | $1.74 billion | 0.23 | $90.19 million | $1.02 | 4.80 |
Vasta Platform has higher revenue and earnings than Endava. Endava is trading at a lower price-to-earnings ratio than Vasta Platform, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Endava and Vasta Platform, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Endava | 3 | 5 | 1 | 0 | 1.78 |
| Vasta Platform | 1 | 1 | 0 | 0 | 1.50 |
Endava currently has a consensus target price of $5.36, indicating a potential upside of 158.05%. Given Endava’s stronger consensus rating and higher probable upside, analysts clearly believe Endava is more favorable than Vasta Platform.
Institutional and Insider Ownership
62.2% of Endava shares are held by institutional investors. Comparatively, 15.8% of Vasta Platform shares are held by institutional investors. 18.8% of Endava shares are held by company insiders. Comparatively, 2.0% of Vasta Platform shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Endava beats Vasta Platform on 8 of the 14 factors compared between the two stocks.
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 Vasta Platform
Vasta Platform Limited provides educational printed and digital solutions to private schools operating in the K-12 education sector in Brazil. The company offers digital and printed textbooks, teacher handbooks, exercise books, multidisciplinary subject books, and student evaluations; and PAR platform that allows schools to select their preferred books and materials and follow their own specific teaching methods. It also provides traditional learning systems under the Anglo, Pitágoras, Rede Cristã de Educação, Maxi Ético, Fibonacci, Mackenzie, and Amplia brands; ongoing training for educators; and services to partner schools, including consulting services for school management and the organization of events, and a proprietary and differentiated evaluation system for partner schools and their students. In addition, the company offers Plurall that provides a digital learning experience and allows for tailor-made adjustments for each school; Plurall Maestro that develops digital solutions to help educators in planning and conducting classes; PROFS, a teacher training program; O Líder em Mim, a program with content, methodology, teaching material, and training to develop leadership; English Stars, an English educational platform; EduAll, a bilingual program to enhance its current solutions; Plurall Olímpico, a content for scientific competitions; MindMakers to develop leadership, collaboration, and persistence through multidisciplinary problem-solving exercises; Matific that provides interactive learning environments and adaptable worksheets; Plurall Store; Plurall Adapta for adaptive learning sessions; Plurall MeuProf to connect students with professors for private tutoring; Prepara to prepare students for external assessments; Leader in Me to develop socio-emotional competencies of K12 students; Education Systems, a structured teaching system for K12 students and teachers; and Prepara ENEM. Vasta Platform Limited was founded in 1966 and is based in São Paulo, Brazil.
Receive News & Ratings for Endava Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Endava and related companies with MarketBeat.com's FREE daily email newsletter.
