Actua (NASDAQ: ACTA) and Sapient (NASDAQ:SAPE) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Volatility & Risk

Actua has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Sapient has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares Actua and Sapient’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Actua 67.78% -5.80% -4.62%
Sapient 6.13% 14.00% 8.96%

Analyst Ratings

This is a breakdown of recent recommendations for Actua and Sapient, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Actua 0 1 0 0 2.00
Sapient 0 0 0 0 N/A

Actua presently has a consensus target price of $17.00, suggesting a potential upside of 9.32%. Given Actua’s higher probable upside, equities research analysts plainly believe Actua is more favorable than Sapient.

Institutional and Insider Ownership

72.4% of Actua shares are owned by institutional investors. 10.2% of Actua shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Actua and Sapient’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Actua $109.30 million 4.66 $70.08 million $2.21 7.04
Sapient N/A N/A N/A $0.57 43.82

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

Summary

Actua beats Sapient on 7 of the 10 factors compared between the two stocks.

About Actua

Actua Corporation, formerly ICG Group, Inc., is a multi-vertical cloud technology company. The Company operates through two segments, which include the vertical cloud segment and the vertical cloud (venture) segment. The Company’s vertical cloud-based businesses include Bolt Solutions Inc. (Bolt), GovDelivery Holdings, Inc. (GovDelivery) and VelocityEHS Holdings, Inc. (VelocityEHS), which operate in the commercial and personal property and casualty insurance, wealth management, government communications and environmental, health and safety (EH&S) markets, respectively. The vertical cloud (venture) businesses include InstaMed Holdings, Inc. (InstaMed) and Parchment Inc. (Parchment), which operate a cloud-based healthcare payments network and an education credentials technology, respectively.

About Sapient

Sapient Corporation (Sapient) is a global services company, which helps clients leverage marketing and technology to transform their businesses. The Company operates in three business units: SapientNitro, Sapient Global Markets, and Sapient Government Services. SapientNitro provides integrated marketing and creative services, Web and interactive development, advertising, media planning and buying, strategic planning and marketing analytics, multi-channel commerce strategy and solutions, including a focus on mobile, and content and asset management strategies and solutions. Through this business unit, it combines multi-channel marketing and commerce. Sapient Global Markets provides integrated advisory, program management, analytics, technology and operations services to capital and commodity markets. Sapient Government Services provides consulting, technology, and marketing services to the United States government agencies and non-governmental organizations (NGOs).

Receive News & Ratings for Actua Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Actua and related companies with MarketBeat.com's FREE daily email newsletter.