Financial Comparison: Alpha Technology Group (NASDAQ:ATGL) & Endava (NYSE:DAVA)

Alpha Technology Group (NASDAQ:ATGL) and Endava (NYSE:DAVA) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Insider & Institutional Ownership

62.2% of Endava shares are held by institutional investors. 18.8% of Endava shares are held by company 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.

Volatility & Risk

Alpha Technology Group has a beta of 9.93, meaning that its stock price is 893% more volatile than the S&P 500. Comparatively, Endava has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Alpha Technology Group and Endava, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Technology Group	0	0	0	0	0.00
Endava	0	4	7	0	2.64

Endava has a consensus price target of $40.01, indicating a potential upside of 18.52%. Given Endava’s stronger consensus rating and higher possible upside, analysts clearly believe Endava is more favorable than Alpha Technology Group.

Profitability

This table compares Alpha Technology Group and Endava’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Technology Group	N/A	N/A	N/A
Endava	0.92%	1.10%	0.77%

Valuation and Earnings

This table compares Alpha Technology Group 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
Alpha Technology Group	$1.59 million	245.31	-$710,000.00	N/A	N/A
Endava	$932.88 million	2.14	$21.56 million	$0.14	241.11

Endava has higher revenue and earnings than Alpha Technology Group.

Summary

Endava beats Alpha Technology Group on 10 of the 12 factors compared between the two stocks.

About Alpha Technology Group

Alpha Technology Group Limited, through its subsidiaries, provides cloud-based information technology services in Hong Kong. The company primarily offers cloud-based and customized customer relationship management and enterprise resource planning systems; web and mobile application development services; artificial intelligence powered optical character recognition services; and technological support and maintenance, and other services, such as maintaining and enhancing services for systems. It serves customers from various industries, including consulting, real estate, architectural design, carpark management, electronic payment services, logistics, investments, retail, textiles, wholesale and distribution, social services, etc. The company was incorporated in 2022 and is based in Kwun Tong, Hong Kong.

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.