Head to Head Analysis: Sapiens International (NASDAQ:SPNS) vs. SofTech (OTCMKTS:SOFT)

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

Volatility & Risk

Sapiens International has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, SofTech has a beta of -1.33, indicating that its share price is 233% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Sapiens International and SofTech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sapiens International	1	4	0	0	1.80
SofTech	0	0	0	0	0.00

Sapiens International presently has a consensus target price of $31.33, indicating a potential downside of 27.17%. Given SofTech’s higher possible upside, analysts plainly believe SofTech is more favorable than Sapiens International.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sapiens International	$542.38 million	4.43	$72.18 million	$1.22	35.26
SofTech	N/A	N/A	N/A	N/A	N/A

Sapiens International has higher revenue and earnings than SofTech.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sapiens International	12.45%	16.59%	11.20%
SofTech	N/A	N/A	N/A

Insider and Institutional Ownership

30.7% of Sapiens International shares are held by institutional investors. 16.0% of Sapiens International shares are held by company insiders. Comparatively, 28.6% of SofTech 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

Sapiens International beats SofTech on 7 of the 9 factors compared between the two stocks.

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.

About SofTech

SofTech, Inc. develops, markets, distributes, and supports computer aided design (CAD), and product data management and collaboration computer solutions for the product lifecycle management (PLM) industry primarily in North America, Europe, and Asia. The company offers ProductCenter, a collaborative PLM solution, which manages the engineering data and electronic files of discrete parts designed in various used third party proprietary design technologies; delivers a combination of document management, design integration, configuration control, change management, bill of materials management, and integration capability with other enterprise-wide systems; enables secure management of product information; and allows engineers and the design chain to manage, share, modify, and track product data and documents in the product development lifecycle. Its ProductCenter technology also allows employees, customers, suppliers, and other team members to securely exchange product information while maintaining a centralized database of critical product data; and enables integration with other business applications, such as enterprise resource planning, supply chain management, and customer relationship management for data exchange across the product lifecycle. In addition, the company offers Connector platform, a technology that allows for a direct interface between Aras Corporation’s Innovator solution and CAD products. SofTech, Inc. markets and distributes its products and services primarily through a direct sales force and its service organization, as well as through resellers. The company was founded in 1969 and is headquartered in Lowell, Massachusetts.