Analyzing Endava (NYSE:DAVA) and Alpha Technology Group (NASDAQ:ATGL)

Endava (NYSE:DAVA) and Alpha Technology Group (NASDAQ:ATGL) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Earnings and Valuation

This table compares Endava and Alpha Technology Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endava	$932.88 million	2.18	$21.56 million	$0.14	245.61
Alpha Technology Group	$12.35 million	29.54	-$710,000.00	N/A	N/A

Endava has higher revenue and earnings than Alpha Technology Group.

Volatility and Risk

Endava has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Alpha Technology Group has a beta of 9.93, indicating that its share price is 893% more volatile than the S&P 500.

Profitability

This table compares Endava and Alpha Technology Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Endava	0.92%	1.10%	0.77%
Alpha Technology Group	N/A	N/A	N/A

Insider and Institutional Ownership

62.2% of Endava shares are held by institutional investors. 18.8% of Endava shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Endava and Alpha Technology Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endava	0	4	7	0	2.64
Alpha Technology Group	0	0	0	0	0.00

Endava presently has a consensus target price of $40.01, suggesting a potential upside of 16.36%. Given Endava’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Endava is more favorable than Alpha Technology Group.

Summary

Endava beats Alpha Technology Group on 10 of the 12 factors compared between the two stocks.

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.

About Alpha Technology Group

Alpha Technology Group Limited, through its subsidiaries, provides cloud-based information technology services in Hong Kong. The company primarily offers cloud-based and customized customer relationship management and enterprise resource planning systems; web and mobile application development services; artificial intelligence powered optical character recognition services; and technological support and maintenance, and other services, such as maintaining and enhancing services for systems. It serves customers from various industries, including consulting, real estate, architectural design, carpark management, electronic payment services, logistics, investments, retail, textiles, wholesale and distribution, social services, etc. The company was incorporated in 2022 and is based in Kwun Tong, Hong Kong.