Head-To-Head Contrast: Verint Systems (NASDAQ:VRNT) versus Sapiens International (NASDAQ:SPNS)

Verint Systems (NASDAQ:VRNT) and Sapiens International (NASDAQ:SPNS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Verint Systems	7.66%	12.35%	4.82%
Sapiens International	13.37%	17.30%	11.75%

Volatility and Risk

Verint Systems has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Sapiens International has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Valuation & Earnings

This table compares Verint Systems and Sapiens International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verint Systems	$909.19 million	1.44	$82.27 million	$0.82	26.57
Sapiens International	$542.38 million	3.13	$72.18 million	$1.30	23.39

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

Insider & Institutional Ownership

95.0% of Verint Systems shares are owned by institutional investors. Comparatively, 30.7% of Sapiens International shares are owned by institutional investors. 1.3% of Verint Systems 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Verint Systems and Sapiens International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verint Systems	0	2	5	0	2.71
Sapiens International	1	2	2	0	2.20

Verint Systems currently has a consensus target price of $30.33, indicating a potential upside of 39.21%. Sapiens International has a consensus target price of $34.25, indicating a potential upside of 12.63%. Given Verint Systems’ stronger consensus rating and higher possible upside, equities analysts plainly believe Verint Systems is more favorable than Sapiens International.

Summary

Verint Systems beats Sapiens International on 8 of the 14 factors compared between the two stocks.

About Verint Systems

Verint Systems Inc. provides customer engagement solutions worldwide. It offers forecasting and scheduling, channels and routing, knowledge management, fraud and security solutions, quality and compliance, analytics and insights, real-time assistance, self-services, financial compliance, and voice pf the consumer solutions. The company provides Verint Open platform designed to help brands increase CX automation across all touchpoints between organization and customers in the contact center, back office, branch, web sites, and mobile apps. It serves banking, insurance, public, retail, and telecommunication industries. Verint Systems Inc. was incorporated in 1994 and is headquartered in Melville, New York.

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.