Reviewing Endava (NYSE:DAVA) & Datasea (NASDAQ:DTSS)

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

Institutional & Insider Ownership

62.2% of Endava shares are held by institutional investors. Comparatively, 82.1% of Datasea shares are held by institutional investors. 18.8% of Endava shares are held by insiders. Comparatively, 50.7% of Datasea shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Endava and Datasea”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endava	$999.23 million	0.16	$27.45 million	($10.51)	-0.28
Datasea	$71.62 million	0.14	-$5.09 million	($0.32)	-3.10

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Endava	-57.01%	2.58%	1.45%
Datasea	-4.80%	-88.98%	-37.33%

Analyst Recommendations

This is a summary of recent recommendations for Endava and Datasea, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endava	3	4	2	0	1.89
Datasea	1	0	0	0	1.00

Endava currently has a consensus price target of $7.43, indicating a potential upside of 155.72%. Given Endava’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Endava is more favorable than Datasea.

Volatility and Risk

Endava has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Datasea has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Summary

Endava beats Datasea on 10 of the 14 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 Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.