Head to Head Contrast: Endava (NYSE:DAVA) & Earlyworks (NASDAQ:ELWS)

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

Risk & Volatility

Endava has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Earlyworks has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endava	$759.42 million	1.86	$21.56 million	$0.11	217.45
Earlyworks	$179.36 million	0.04	-$2.13 million	N/A	N/A

Endava has higher revenue and earnings than Earlyworks.

Insider and Institutional Ownership

62.2% of Endava shares are owned by institutional investors. Comparatively, 0.5% of Earlyworks shares are owned by institutional investors. 18.8% of Endava shares are owned 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 Endava and Earlyworks’ net margins, return on equity and return on assets.

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

Analyst Recommendations

This is a summary of recent recommendations for Endava and Earlyworks, as reported by MarketBeat.

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

Endava currently has a consensus price target of $39.10, indicating a potential upside of 63.46%. Given Endava’s stronger consensus rating and higher probable upside, equities analysts clearly believe Endava is more favorable than Earlyworks.

Summary

Endava beats Earlyworks on 11 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 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.