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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Qualys and Sapiens International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qualys 0 7 7 0 2.50
Sapiens International 0 2 2 0 2.50

Qualys presently has a consensus price target of $84.00, indicating a potential downside of 11.21%. Sapiens International has a consensus price target of $14.00, indicating a potential upside of 18.74%. Given Sapiens International’s higher possible upside, analysts clearly believe Sapiens International is more favorable than Qualys.

Institutional and Insider Ownership

82.2% of Qualys shares are owned by institutional investors. Comparatively, 9.5% of Sapiens International shares are owned by institutional investors. 18.6% of Qualys shares are owned by company insiders. Comparatively, 16.0% of Sapiens International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Qualys and Sapiens International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qualys $230.83 million 15.98 $40.44 million $0.90 105.11
Sapiens International $269.19 million 2.18 $350,000.00 $0.27 43.67

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

Dividends

Sapiens International pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Qualys does not pay a dividend. Sapiens International pays out 74.1% of its earnings in the form of a dividend.

Volatility & Risk

Qualys has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Sapiens International has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Qualys 12.04% 12.70% 8.19%
Sapiens International 3.83% 11.37% 6.10%

Summary

Qualys beats Sapiens International on 10 of the 14 factors compared between the two stocks.

About Qualys

Qualys, Inc. engages in the provision of cloud security and compliance solutions. Its products enable organizations to identify security risks to information technology infrastructures; help protect information technology systems and applications from cyber attacks; and achieve compliance with internal policies and external regulations. The firm operates its business through the Unites States and Foreign geographical segments. It also offers solutions through a software-as-a-service model, primarily with renewable annual subscriptions. The company was founded on December 30, 1999 and is headquartered in Redwood City, CA.

About Sapiens International

Sapiens International Corporation N.V. provides software solutions for the insurance and financial services industries in North America, Europe, the Asia Pacific, and South Africa. The company offers software platform and solutions for life, pension, and annuities, such as Sapiens ALIS, LifeSuite, Life Portraits, LifeApply, Sapiens INSIGHT, and Sapiens Closed Books; and personal, commercial and specialty lines, and workers' compensation comprising Sapiens IDIT, Adaptik Policy, Adaptik Billing, Stream Claim, Sapiens Stingray, PowerSuite, and CompSuite. It also provides Digital Engagement, a digital insurance suite that includes advanced analytics, a portal for consumers and agents, an API layer for integration with the insurtech ecosystem, and a cloud proposition; and process analysis, business process automation, project management, performance optimization consulting services, etc., as well as information system development and various implementation methodology services to agents, customers, and insurance personnel. In addition, the company offers reinsurance software solutions, including Sapiens Reinsurance, Freedom Reinsurance System, and Universal Reinsurance System; eFreedom Annual Statement, PRO Financial General Ledger and Accounts Payable, PTE Financial applications, Insurance Financial reporting, and Power2Play financial and compliance solutions; and Sapiens DECISION, an enterprise-scale decision management solution. Further, it provides technology-based solutions based on its eMerge platform, which offers end-to-end modular business solutions, as well as Agile, Sapiens Delivery Tool, and Sapiens Delivery Performance Indicator methodologies. Additionally, the company offers program delivery, business transformation, and managed services. It markets and sells its products and services through direct and partner sales. The company was founded in 1982 and is headquartered in Holon, Israel.

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