Comparing Enfusion (NYSE:ENFN) & Sapiens International (NASDAQ:SPNS)

Enfusion (NYSE:ENFN) and Sapiens International (NASDAQ:SPNS) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enfusion	$188.35 million	6.07	$6.03 million	$0.04	222.75
Sapiens International	$532.61 million	3.86	$62.44 million	$1.22	30.23

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Enfusion and Sapiens International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enfusion	3	2	1	0	1.67
Sapiens International	1	0	2	0	2.33

Enfusion currently has a consensus target price of $9.33, suggesting a potential upside of 4.75%. Sapiens International has a consensus target price of $41.67, suggesting a potential upside of 12.98%. Given Sapiens International’s stronger consensus rating and higher possible upside, analysts clearly believe Sapiens International is more favorable than Enfusion.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enfusion	1.98%	6.17%	4.51%
Sapiens International	12.92%	17.60%	11.59%

Institutional & Insider Ownership

81.1% of Enfusion shares are owned by institutional investors. Comparatively, 30.7% of Sapiens International shares are owned by institutional investors. 36.4% of Enfusion 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Enfusion has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Sapiens International has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Summary

Sapiens International beats Enfusion on 10 of the 14 factors compared between the two stocks.

About Enfusion

Enfusion, Inc. provides software-as-a-service solutions for investment management industry in the United States, Europe, the Middle East, Africa, and the Asia Pacific. The company provides Portfolio Management System, which generates a real-time investment book of record that consists of valuation and risk tools, which allows users to analyze aggregated or decomposed portfolio data for chief investment officers (CIOs) and portfolio managers; and Order and Execution Management System that enables portfolio managers, traders, compliance teams, and analysts to electronically communicate trade orders for a variety of asset classes, manage trade orders, and systemically enforce trading regulations and internal guidelines. It also offers Accounting/General Ledger System, a real-time accounting book of record for chief financial officers, chief operating officers, accountants, and operations teams; Enfusion Analytics System, which enables CIOs, portfolio managers, traders, and analysts to analyze portfolios through time horizons and automate customized visualized reports for internal and external stakeholders; and technology-powered and managed services. Enfusion, Inc. was founded in 1997 and is headquartered in Chicago, Illinois.

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.