Rimini Street (NASDAQ:RMNI – Get Free Report) and Endava (NYSE:DAVA – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.
Risk & Volatility
Rimini Street has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Endava has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.
Valuation & Earnings
This table compares Rimini Street and Endava”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rimini Street | $438.39 million | 1.20 | $37.10 million | $0.12 | 47.23 |
| Endava | $999.23 million | 0.09 | $27.45 million | ($10.51) | -0.15 |
Rimini Street has higher earnings, but lower revenue than Endava. Endava is trading at a lower price-to-earnings ratio than Rimini Street, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
73.8% of Rimini Street shares are held by institutional investors. Comparatively, 62.2% of Endava shares are held by institutional investors. 42.0% of Rimini Street shares are held by insiders. Comparatively, 18.8% of Endava shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Rimini Street and Endava’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rimini Street | 2.51% | -92.98% | 4.64% |
| Endava | -57.01% | 2.48% | 1.40% |
Analyst Ratings
This is a summary of recent recommendations for Rimini Street and Endava, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rimini Street | 0 | 3 | 3 | 0 | 2.50 |
| Endava | 3 | 5 | 0 | 0 | 1.62 |
Rimini Street currently has a consensus target price of $6.33, indicating a potential upside of 11.76%. Endava has a consensus target price of $5.42, indicating a potential upside of 239.60%. Given Endava’s higher possible upside, analysts clearly believe Endava is more favorable than Rimini Street.
Summary
Rimini Street beats Endava on 11 of the 14 factors compared between the two stocks.
About Rimini Street
Rimini Street, Inc. is a provider of enterprise software support and services. The company offers third-party support for software from vendors including Oracle and SAP, as well as support for other enterprise applications and databases. Its services are designed to help organizations maintain and manage their existing software systems. Rimini Street also provides managed services, application management, security services and advisory support. The company serves clients internationally across a range of industries.
About Endava
Endava plc (NYSE: DAVA) is a technology services company that helps organizations design, develop and modernize digital products, platforms and business processes. Its services include technology consulting, software engineering, cloud and infrastructure solutions, data and analytics, artificial intelligence, digital product development, and quality assurance and testing. The company works with clients across industries including payments, banking and capital markets, insurance, telecommunications, media and technology, healthcare, mobility, and consumer products.
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