Reviewing Endava (NYSE:DAVA) and Sify Technologies (NASDAQ:SIFY)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sify Technologies and Endava, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sify Technologies	1	0	0	0	1.00
Endava	2	5	1	0	1.88

Endava has a consensus target price of $5.50, indicating a potential upside of 78.86%. Given Endava’s stronger consensus rating and higher probable upside, analysts plainly believe Endava is more favorable than Sify Technologies.

Institutional & Insider Ownership

0.6% of Sify Technologies shares are held by institutional investors. Comparatively, 62.2% of Endava shares are held by institutional investors. 77.0% of Sify Technologies shares are held by insiders. Comparatively, 18.8% of Endava shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sify Technologies	-1.97%	-9.65%	-2.14%
Endava	-57.01%	2.48%	1.40%

Volatility & Risk

Sify Technologies has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Endava has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sify Technologies and Endava”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sify Technologies	$508.17 million	2.18	-$15.00 million	N/A	N/A
Endava	$999.23 million	0.17	$27.45 million	($10.51)	-0.29

Endava has higher revenue and earnings than Sify Technologies.

Summary

Endava beats Sify Technologies on 8 of the 12 factors compared between the two stocks.

About Sify Technologies

Sify Technologies Limited offers ICT solutions and services in India and internationally. It operates through Network Centric Services, Data Center Services, and Digital Services segments. The company offers internet, internet protocol, multi-protocol label switching, virtual private network, SDWAN, managed Wi-Fi, internet of things, wholesale and retail voice, dedicated internet access, and proactive monitoring and management of the network and devices. It provides co-location services; and managed hosting services, such as storage, back-up management, performance monitoring, infrastructure monitoring and management, network availability, server load balancing, managed shared firewall, web server log reporting, and remote and smart hands services. In addition, it offers managed network services; EDGE services; cloud and managed services, including infrastructure as a service, platform as a service, virtual private data center, computing services, IT platform, backup and recovery solution, and content delivery network; remote and onsite infrastructure managed services; and managed security services. Further, the company provides technology integration services; application integration services, which includes talent management, supply chain management, web portal solutions content services, portal development and maintenance, eLearning, digital signature, SAP, Microsoft, Oracle services. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. Sify Technologies Limited was incorporated in 1995 and is headquartered in Chennai, India. Sify Technologies Limited is a subsidiary of Ramanand Core Investment Company Private Limited.

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.