Sapiens International (NASDAQ: SPNS) and Constant Contact (NASDAQ:CTCT) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Dividends

Sapiens International pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Constant Contact does not pay a dividend. Sapiens International pays out 1,000.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Sapiens International and Constant Contact’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sapiens International $216.19 million 2.69 $19.33 million $0.02 590.30
Constant Contact N/A N/A N/A $0.60 N/A

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

Analyst Recommendations

This is a summary of current ratings and target prices for Sapiens International and Constant Contact, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sapiens International 0 0 4 0 3.00
Constant Contact 0 0 0 0 N/A

Sapiens International presently has a consensus target price of $15.00, indicating a potential upside of 27.12%.

Insider & Institutional Ownership

9.1% of Sapiens International shares are held by institutional investors. 16.0% of Sapiens International shares are held 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.

Profitability

This table compares Sapiens International and Constant Contact’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sapiens International 0.38% 6.84% 4.10%
Constant Contact 6.96% 9.09% 7.35%

Summary

Sapiens International beats Constant Contact on 6 of the 11 factors compared between the two stocks.

About Sapiens International

Sapiens International Corporation N.V. (Sapiens) is a provider of software solutions for the insurance industry, with a focus on the financial services sector. The Company operates in provider of software solutions segment. Its software solutions portfolio consists of Life, Pension, Annuity and Retirement Solutions, including software solutions for the management of a range of products for life, pension, annuity and retirement; Property and Casualty/General Insurance Solutions, including a software suite of solutions, supporting a range of business lines, including personal, commercial and specialty lines, as well as a solution for the management of reinsurance contracts; Sapiens DECISION, which is a business decision management solution, and Technology-Based Solutions, such as Sapiens eMerge. Its services include project delivery and implementation, business and technical consulting related to its products, project and program management, training and user acceptance testing.

About Constant Contact

Constant Contact, Inc. (Constant Contact) is a provider of online marketing tools for small organizations, including small businesses, associations and non-profits. The Company’s tools include Email Marketing, EventSpot, Social Campaigns, SaveLocal, SinglePlatform and Survey. It also provides Constant Contact Toolkit, which is an online marketing platform. Toolkit serves the small organizations to find and engage with customers across various marketing channels, including email, social, mobile and Web. Toolkit is available to customers in three packages: Email, Email Plus and Personal Marketer. Its Email offering is for the customers of email marketing product. Its Email Plus includes email marketing product, as well as access to its other marketing offerings, including running promotions and offers, managing events online, conducting surveys and getting feedback. Its Personal Marketer package includes various Toolkit offerings in Email Plus.

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