Critical Survey: Sapiens International (NASDAQ:SPNS) and iEntertainment Network (OTCMKTS:IENT)

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

Institutional and Insider Ownership

30.7% of Sapiens International shares are owned by institutional investors. 16.0% of Sapiens International shares are owned by company insiders. Comparatively, 32.0% of iEntertainment Network shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Sapiens International has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, iEntertainment Network has a beta of -1.86, indicating that its stock price is 286% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sapiens International	13.31%	17.42%	11.85%
iEntertainment Network	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and target prices for Sapiens International and iEntertainment Network, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sapiens International	1	2	2	0	2.20
iEntertainment Network	0	0	0	0	0.00

Sapiens International presently has a consensus target price of $33.50, suggesting a potential upside of 20.85%. Given Sapiens International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Sapiens International is more favorable than iEntertainment Network.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sapiens International	$542.38 million	2.86	$62.44 million	$1.29	21.49
iEntertainment Network	N/A	N/A	N/A	N/A	N/A

Sapiens International has higher revenue and earnings than iEntertainment Network.

Summary

Sapiens International beats iEntertainment Network on 9 of the 10 factors compared between the two stocks.

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.

About iEntertainment Network

iEntertainment Network, Inc. develops and operates retail and online military simulation games. The company offers multiplayer and single-player games. The company was formerly known as Interactive Magic, Inc. and changed its name to iEntertainment Network, Inc. in 1998. The company was founded in 1994 and is based in Cary, North Carolina.