Contrasting Sapiens International (SPNS) & PTC (PTC)

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

Insider and Institutional Ownership

9.2% of Sapiens International shares are owned by institutional investors. Comparatively, 94.4% of PTC shares are owned by institutional investors. 16.0% of Sapiens International shares are owned by company insiders. Comparatively, 1.2% of PTC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Sapiens International pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. PTC does not pay a dividend. Sapiens International pays out 74.1% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Sapiens International 3.83% 11.37% 6.10%
PTC 4.55% 11.62% 4.44%

Earnings and Valuation

This table compares Sapiens International and PTC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sapiens International $269.19 million 2.22 $350,000.00 $0.27 44.44
PTC $1.16 billion 9.59 $6.23 million $0.74 128.05

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

Analyst Recommendations

This is a breakdown of recent ratings for Sapiens International and PTC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sapiens International 0 2 1 0 2.33
PTC 0 4 11 0 2.73

Sapiens International presently has a consensus target price of $14.00, indicating a potential upside of 16.67%. PTC has a consensus target price of $99.67, indicating a potential upside of 5.18%. Given Sapiens International’s higher possible upside, research analysts plainly believe Sapiens International is more favorable than PTC.

Summary

PTC beats Sapiens International on 11 of the 15 factors compared between the two stocks.

About Sapiens International

Sapiens International Corporation N.V. provides software solutions for the insurance and financial services industries in North America, Europe, the Asia Pacific, and South Africa. The company offers software platform and solutions for life, pension, and annuities, such as Sapiens ALIS, LifeSuite, Life Portraits, LifeApply, Sapiens INSIGHT, and Sapiens Closed Books; and personal, commercial and specialty lines, and workers' compensation comprising Sapiens IDIT, Adaptik Policy, Adaptik Billing, Stream Claim, Sapiens Stingray, PowerSuite, and CompSuite. It also provides Digital Engagement, a digital insurance suite that includes advanced analytics, a portal for consumers and agents, an API layer for integration with the insurtech ecosystem, and a cloud proposition; and process analysis, business process automation, project management, performance optimization consulting services, etc., as well as information system development and various implementation methodology services to agents, customers, and insurance personnel. In addition, the company offers reinsurance software solutions, including Sapiens Reinsurance, Freedom Reinsurance System, and Universal Reinsurance System; eFreedom Annual Statement, PRO Financial General Ledger and Accounts Payable, PTE Financial applications, Insurance Financial reporting, and Power2Play financial and compliance solutions; and Sapiens DECISION, an enterprise-scale decision management solution. Further, it provides technology-based solutions based on its eMerge platform, which offers end-to-end modular business solutions, as well as Agile, Sapiens Delivery Tool, and Sapiens Delivery Performance Indicator methodologies. Additionally, the company offers program delivery, business transformation, and managed services. It markets and sells its products and services through direct and partner sales. The company was founded in 1982 and is headquartered in Holon, Israel.

About PTC

PTC Inc. develops and delivers software products and solutions worldwide. It operates through three segments: IoT Group, Solutions Group, and Professional Services. It offers ThingWorx, an industrial innovation platform to develop and deploy industrial Internet of Things (IoT) applications and augmented reality (AR) experiences; and KEPServerEX solution to provide communications connectivity for industrial automation environments to connect, manage, monitor, and control disparate devices and software applications. It also provides Vuforia Studio tool for industrial enterprises to rapidly author and publish AR experiences; Vuforia, an AR technology platform to build applications that see and interact with things; Creo, an interoperable suite of product design software for design engineers; and Mathcad software for solving, analyzing, and sharing vital engineering calculations. In addition, it offers Windchill that provides product lifecycle management capabilities; ThingWorx Navigate for complete, contextual, up-to-date, and accurate product information; Integrity solution to manage system models, software configurations, test plans, and defects; and Creo View solution to share 3D computer-aided design information, and support drawings and documents from a multitude of sources. Further, it provides Servigistics, a suite of software products that enable a systematic approach to service lifecycle management; and Servigistics Arbortext, an enterprise software suite which allows manufacturers to create, illustrate, manage, and publish technical and service parts information, as well as offers consulting, implementation, training, cloud, and license and support services. PTC Inc. markets its products primarily through professionals, third-party resellers, and strategic partners. The company was formerly known as Parametric Technology Corporation and changed its name to PTC Inc. in January 2013. PTC Inc. was founded in 1985 and is headquartered in Needham, Massachusetts.

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