Endava (NYSE:DAVA) versus ASGN (NYSE:ASGN) Head-To-Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Endava	2.73%	5.56%	3.62%
ASGN	3.50%	11.90%	5.98%

Valuation and Earnings

This table compares Endava and ASGN”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endava	$999.23 million	0.55	$27.45 million	$0.45	20.51
ASGN	$4.10 billion	0.53	$175.20 million	$3.16	15.56

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

Volatility & Risk

Endava has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, ASGN has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Endava and ASGN, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endava	0	7	3	0	2.30
ASGN	2	3	2	0	2.00

Endava currently has a consensus target price of $20.78, suggesting a potential upside of 125.11%. ASGN has a consensus target price of $61.67, suggesting a potential upside of 25.42%. Given Endava’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Endava is more favorable than ASGN.

Institutional & Insider Ownership

62.2% of Endava shares are held by institutional investors. Comparatively, 95.4% of ASGN shares are held by institutional investors. 18.8% of Endava shares are held by company insiders. Comparatively, 3.4% of ASGN shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

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 ASGN

ASGN Incorporated engages in the provision of information technology (IT) services and solutions in the technology, digital, and creative fields for commercial and government sectors in the United States, Canada, and Europe. It operates through two segments: Commercial and Federal Government. The Commercial Segment provides consulting, creative digital marketing, and permanent placement services primarily to enterprise clients. This segment also offers workforce mobilization, modern enterprise, and digital innovation IT consulting services; and cloud, data and analytics, and digital transformation solutions. The Federal Government Segment provides mission-critical solutions to the department of defense, intelligence communities, and federal civilian agencies. This segment offers cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, and science and engineering solutions. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018. ASGN Incorporated was founded in 1985 and is based in Glen Allen, Virginia.