Reviewing Earlyworks (NASDAQ:ELWS) & Endava (NYSE:DAVA)

Earlyworks (NASDAQ:ELWS) and Endava (NYSE:DAVA) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

0.5% of Earlyworks shares are held by institutional investors. Comparatively, 62.2% of Endava shares are held by institutional investors. 18.8% of Endava shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Earlyworks and Endava’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Earlyworks	N/A	N/A	N/A
Endava	0.74%	0.89%	0.61%

Earnings & Valuation

This table compares Earlyworks and Endava”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Earlyworks	$179.36 million	0.04	-$2.13 million	N/A	N/A
Endava	$759.42 million	1.84	$21.56 million	$0.11	215.64

Endava has higher revenue and earnings than Earlyworks.

Risk & Volatility

Earlyworks has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Endava has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Earlyworks and Endava, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Earlyworks	0	0	0	0	0.00
Endava	0	4	7	0	2.64

Endava has a consensus target price of $39.10, indicating a potential upside of 64.84%. Given Endava’s stronger consensus rating and higher possible upside, analysts plainly believe Endava is more favorable than Earlyworks.

Summary

Endava beats Earlyworks on 11 of the 12 factors compared between the two stocks.

About Earlyworks

Earlyworks Co., Ltd operates as a blockchain-based technology company in Japan. The company builds products, deliver services, and develop solutions based on its proprietary Grid Ledger System to leverage blockchain technology in various business settings, including advertisement tracking, online visitor management, and sales of non-fungible tokens. It also provides software and system development services; consulting and solution services; blockchain system solution planning; and proposal, design, and development planning services. The company serves the information technology, shipping, real estate, entertainment, cosmetics, and chemical products sectors. Earlyworks Co., Ltd was incorporated in 2018 and is based in Tokyo, Japan.

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.