Contrasting Datasea (NASDAQ:DTSS) and Endava (NYSE:DAVA)

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

Institutional and Insider Ownership

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

Valuation and Earnings

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

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

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

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Datasea and Endava, as reported by MarketBeat.

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

Endava 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, analysts clearly believe Endava is more favorable than Datasea.

Volatility & Risk

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

Summary

Endava beats Datasea on 10 of the 14 factors compared between the two stocks.

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.

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.