Head-To-Head Analysis: Innovid (NYSE:CTV) and Sapiens International (NASDAQ:SPNS)

Sapiens International (NASDAQ:SPNS) and Innovid (NYSE:CTV) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current recommendations for Sapiens International and Innovid, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sapiens International	1	0	2	0	2.33
Innovid	0	1	2	0	2.67

Sapiens International presently has a consensus target price of $41.67, indicating a potential upside of 12.58%. Innovid has a consensus target price of $2.83, indicating a potential upside of 46.80%. Given Innovid’s stronger consensus rating and higher probable upside, analysts plainly believe Innovid is more favorable than Sapiens International.

Insider & Institutional Ownership

30.7% of Sapiens International shares are owned by institutional investors. Comparatively, 25.5% of Innovid shares are owned by institutional investors. 16.0% of Sapiens International shares are owned by company insiders. Comparatively, 9.5% of Innovid shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sapiens International	12.92%	17.60%	11.59%
Innovid	-14.15%	-10.97%	-8.71%

Valuation & Earnings

This table compares Sapiens International and Innovid”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sapiens International	$514.58 million	4.01	$62.44 million	$1.22	30.34
Innovid	$149.54 million	1.89	-$31.91 million	($0.14)	-13.79

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

Risk and Volatility

Sapiens International has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Innovid has a beta of 3.08, indicating that its share price is 208% more volatile than the S&P 500.

Summary

Sapiens International beats Innovid on 10 of the 13 factors compared between the two stocks.

About Sapiens International

Sapiens International Corporation N.V. provides software solutions for the insurance industry in North America, the United Kingdom, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides various solutions for property and casualty commercial and personal lines, life and pensions, and reinsurance fields. It offers IDITSuite, an AI powered, end-to-end insurance software; DigitalSuite, a cloud-native, future-proof digital engagement platform; IDITGo, a pre-configured, data-enriched insurance launch and accelerator platform solutions; consultancy services for property and casualty commercial lines; and Tia Enterprise solution for customer engagement. The company also provides CoreSuite, an end-to-end cloud and digital PAS for individual and group products across life, health, wealth, and pensions; CustomerConnect, a dynamic self-service and persona-based portal to engage with insureds; AgentConnect, a portal for agents and brokers to focus on sales enablement, customer retention, and increasing customer value; and ReinsuranceMaster, a reinsurance automation software that provides insurers full financial control and flexibility over their entire reinsurance process. The company was founded in 1982 and is headquartered in Holon, Israel.

About Innovid

Innovid Corp. operates an independent software platform that provides ad serving, measurement, and creative services. It offers advertising services for the creation, delivery, and measurement of TV ads across connected TV, mobile TV, and desktop TV environments to advertisers, publishers, and media agencies. The company serves consumer packaged goods, pharmaceutical and healthcare, retail, financial services, and automotive and technology industries; third party agencies; and publishers in the United States, Canada, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. Innovid Corp. was incorporated in 2007 and is headquartered in New York, New York.