Analyzing Semantix (NASDAQ:STIX) & Endava (NYSE:DAVA)

Semantix (NASDAQ:STIX) and Endava (NYSE:DAVA) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Profitability

This table compares Semantix and Endava’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semantix	-69.49%	-45.45%	-26.98%
Endava	0.74%	0.89%	0.61%

Earnings and Valuation

This table compares Semantix and Endava”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semantix	$264.23 million	0.00	-$63.61 million	($0.81)	N/A
Endava	$759.42 million	1.66	$21.56 million	$0.11	194.55

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

Volatility and Risk

Semantix has a beta of -0.37, suggesting that its share price is 137% less volatile than the S&P 500. Comparatively, Endava has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Semantix and Endava, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semantix	0	0	0	0	0.00
Endava	0	4	6	0	2.60

Endava has a consensus target price of $37.31, suggesting a potential upside of 74.35%. Given Endava’s stronger consensus rating and higher possible upside, analysts plainly believe Endava is more favorable than Semantix.

Institutional & Insider Ownership

40.1% of Semantix shares are held by institutional investors. Comparatively, 62.2% of Endava shares are held by institutional investors. 35.5% of Semantix shares are held by company insiders. Comparatively, 18.8% of Endava shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Endava beats Semantix on 12 of the 13 factors compared between the two stocks.

About Semantix

Semantix, Inc., together with its subsidiaries, provides end-to-end proprietary Software as a Service (SaaS) data platform in Latin America and the United States. The company offers SDP, a multi-cloud SaaS data platform that provides data integration, data operations, machine learning operations, data governance, data sharing, and data visualization for financial institutions; healthcare plans operators, health insurance brokers, hospitals, clinics, and imaging and diagnostics facilities; and retailers. It also sells third-party software licenses to the finance, retail, telecommunications, healthcare, industrials, and other sectors. In addition, the company offers artificial intelligence and data analytics services, including consulting, cloud monitoring, data integration, data science, and data engineering. The company was founded in 2010 and is based in São Paulo, Brazil.

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.