Endava (NYSE:DAVA) & Vasta Platform (NASDAQ:VSTA) Head to Head Comparison

Vasta Platform (NASDAQ:VSTA) and Endava (NYSE:DAVA) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vasta Platform	27.31%	1.53%	1.06%
Endava	-57.01%	2.48%	1.40%

Analyst Ratings

This is a summary of recent ratings and price targets for Vasta Platform and Endava, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vasta Platform	1	1	0	0	1.50
Endava	3	5	1	0	1.78

Endava has a consensus target price of $5.36, suggesting a potential upside of 152.10%. Given Endava’s stronger consensus rating and higher possible upside, analysts plainly believe Endava is more favorable than Vasta Platform.

Institutional and Insider Ownership

15.8% of Vasta Platform shares are owned by institutional investors. Comparatively, 62.2% of Endava shares are owned by institutional investors. 2.0% of Vasta Platform shares are owned by insiders. Comparatively, 18.8% of Endava shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Vasta Platform and Endava”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vasta Platform	$1.74 billion	0.23	$90.19 million	$1.02	4.80
Endava	$999.23 million	0.12	$27.45 million	($10.51)	-0.20

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

Volatility and Risk

Vasta Platform has a beta of -0.29, suggesting that its share price is 129% less volatile than the S&P 500. Comparatively, Endava has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Summary

Endava beats Vasta Platform on 9 of the 14 factors compared between the two stocks.

About Vasta Platform

Vasta Platform Limited provides educational printed and digital solutions to private schools operating in the K-12 education sector in Brazil. The company offers digital and printed textbooks, teacher handbooks, exercise books, multidisciplinary subject books, and student evaluations; and PAR platform that allows schools to select their preferred books and materials and follow their own specific teaching methods. It also provides traditional learning systems under the Anglo, Pitágoras, Rede Cristã de Educação, Maxi Ético, Fibonacci, Mackenzie, and Amplia brands; ongoing training for educators; and services to partner schools, including consulting services for school management and the organization of events, and a proprietary and differentiated evaluation system for partner schools and their students. In addition, the company offers Plurall that provides a digital learning experience and allows for tailor-made adjustments for each school; Plurall Maestro that develops digital solutions to help educators in planning and conducting classes; PROFS, a teacher training program; O Líder em Mim, a program with content, methodology, teaching material, and training to develop leadership; English Stars, an English educational platform; EduAll, a bilingual program to enhance its current solutions; Plurall Olímpico, a content for scientific competitions; MindMakers to develop leadership, collaboration, and persistence through multidisciplinary problem-solving exercises; Matific that provides interactive learning environments and adaptable worksheets; Plurall Store; Plurall Adapta for adaptive learning sessions; Plurall MeuProf to connect students with professors for private tutoring; Prepara to prepare students for external assessments; Leader in Me to develop socio-emotional competencies of K12 students; Education Systems, a structured teaching system for K12 students and teachers; and Prepara ENEM. Vasta Platform Limited was founded in 1966 and is based in São Paulo, Brazil.

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.