SolarWinds (SWI) versus Sapiens International (SPNS) Head-To-Head Review

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

Dividends

Sapiens International pays an annual dividend of $0.20 per share and has a dividend yield of 1.8%. SolarWinds does not pay a dividend. Sapiens International pays out 74.1% of its earnings in the form of a dividend.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SolarWinds N/A N/A N/A N/A N/A
Sapiens International $269.19 million 2.01 $350,000.00 $0.27 40.22

Sapiens International has higher revenue and earnings than SolarWinds.

Analyst Recommendations

This is a summary of current recommendations and price targets for SolarWinds and Sapiens International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SolarWinds 0 4 11 0 2.73
Sapiens International 0 2 2 0 2.50

SolarWinds currently has a consensus target price of $19.07, suggesting a potential upside of 35.64%. Sapiens International has a consensus target price of $14.00, suggesting a potential upside of 28.91%. Given SolarWinds’ stronger consensus rating and higher possible upside, equities analysts plainly believe SolarWinds is more favorable than Sapiens International.

Insider & Institutional Ownership

4.4% of Sapiens International shares are held by institutional investors. 1.9% of SolarWinds shares are held by company insiders. Comparatively, 16.0% of Sapiens International shares are held by company 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.

Profitability

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

Net Margins Return on Equity Return on Assets
SolarWinds N/A N/A N/A
Sapiens International 4.59% 12.05% 6.42%

Summary

Sapiens International beats SolarWinds on 7 of the 11 factors compared between the two stocks.

About SolarWinds

SolarWinds Corporation provides information technology (IT) infrastructure management software products in the United States and internationally. It offers products that are designed to solve the day-to-day problems encountered by technology professionals managing complex IT infrastructure covering on-premise, cloud, and hybrid IT environments. The company markets and sells its products directly to database administrators, storage administrators, Web operators, and DevOps professionals, as well as managed service providers. The company was formerly known as SolarWinds Parent, Inc. and changed its name to SolarWinds Corporation in May 2018. SolarWinds Corporation was founded in 1999 and is headquartered in Austin, Texas.

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.

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