Critical Review: Endava (DAVA) versus Aspen Technology (AZPN)

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Endava (NASDAQ: AZPN) and Aspen Technology (NASDAQ:AZPN) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Valuation and Earnings

This table compares Endava and Aspen Technology’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endava N/A N/A N/A N/A N/A
Aspen Technology $499.51 million 16.20 $148.68 million $2.06 55.32

Aspen Technology has higher revenue and earnings than Endava.

Insider & Institutional Ownership

98.4% of Aspen Technology shares are held by institutional investors. 0.6% of Aspen Technology 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 Endava and Aspen Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endava N/A N/A N/A
Aspen Technology 29.77% -53.91% 65.48%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Endava and Aspen Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endava 0 3 2 0 2.40
Aspen Technology 2 2 3 0 2.14

Endava presently has a consensus price target of $28.40, suggesting a potential upside of 11.37%. Aspen Technology has a consensus price target of $94.57, suggesting a potential downside of 17.01%. Given Endava’s stronger consensus rating and higher possible upside, equities analysts plainly believe Endava is more favorable than Aspen Technology.

Summary

Aspen Technology beats Endava on 6 of the 9 factors compared between the two stocks.

Endava Company Profile

Endava Plc engages in the provision of technology services which involves collaborations with its clients. The firm works with finance, insurance, telecommunications, media, technology, and retail companies. The company was founded by John Cotterell in 2000 and is headquartered in London, the United Kingdom.

Aspen Technology Company Profile

Aspen Technology, Inc., together with its subsidiaries, provides software and services in the United States, Europe, and internationally. It operates through two segments, Subscription and Software, and Services. It supplies asset optimization solutions that optimize asset design, operations, and maintenance lifecycle in various industrial environments. The company's software suites include aspenONE Engineering, aspenONE Manufacturing and Supply Chain, and aspenONE Asset Performance Management, which are integrated applications that allow end users to design process manufacturing environments, forecast and simulate potential actions, monitor operational performances, predict the reliability of an asset and equipment failure, and manage planning and scheduling activities, as well as collaborate across these functions and activities. It also provides software maintenance and support, professional, and training services. The company's customers include companies that are engaged in the process and other industries, including energy, chemicals, engineering, and construction, as well as pharmaceuticals, transportation, power, metals and mining, pulp and paper, and consumer packaged goods. Aspen Technology, Inc. was founded in 1981 and is headquartered in Bedford, Massachusetts.

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