Critical Contrast: CoreWeave (NASDAQ:CRWV) and Endava (NYSE:DAVA)

CoreWeave (NASDAQ:CRWV) and Endava (NYSE:DAVA) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares CoreWeave and Endava’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CoreWeave	-25.41%	-47.95%	-3.79%
Endava	-57.01%	2.48%	1.40%

Volatility and Risk

CoreWeave has a beta of 7.45, meaning that its stock price is 645% more volatile than the S&P 500. Comparatively, Endava has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Institutional and Insider Ownership

62.2% of Endava shares are held by institutional investors. 24.2% of CoreWeave shares are held by insiders. Comparatively, 18.8% of Endava shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for CoreWeave and Endava, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreWeave	3	10	21	0	2.53
Endava	3	5	1	0	1.78

CoreWeave currently has a consensus target price of $138.31, suggesting a potential upside of 59.42%. Endava has a consensus target price of $5.36, suggesting a potential upside of 152.10%. Given Endava’s higher probable upside, analysts plainly believe Endava is more favorable than CoreWeave.

Earnings & Valuation

This table compares CoreWeave and Endava”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoreWeave	$5.13 billion	7.76	-$1.17 billion	($3.65)	-23.77
Endava	$999.23 million	0.12	$27.45 million	($10.51)	-0.20

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

Summary

CoreWeave beats Endava on 8 of the 14 factors compared between the two stocks.

About CoreWeave

CoreWeave, Inc. engages in the powers of the creation and delivery of the intelligence that drives innovation. It offers a solution used by organizations of all sizes that require sophisticated AI computing, from the largest of enterprises to small, well-funded start-ups. The company was founded by Michael Intrator, Brian Venturo, and Brannin McBee on September 21, 2017 and is headquartered in Livingston, NJ.

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.