Sapient (NASDAQ: SAPE) and 2U (NASDAQ:TWOU) are both mid-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.
Risk and Volatility
Sapient has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, 2U has a beta of -0.18, indicating that its share price is 118% less volatile than the S&P 500.
This table compares Sapient and 2U’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Sapient and 2U’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|2U||$205.86 million||17.11||-$20.68 million||($0.67)||-100.67|
Sapient has higher earnings, but lower revenue than 2U. 2U is trading at a lower price-to-earnings ratio than Sapient, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Sapient and 2U, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
2U has a consensus price target of $71.44, suggesting a potential upside of 5.92%. Given 2U’s higher probable upside, analysts plainly believe 2U is more favorable than Sapient.
Sapient beats 2U on 5 of the 8 factors compared between the two stocks.
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).
2U, Inc. is a provider of an integrated solution consisting of cloud-based software-as-a-service (SaaS) combined with technology-enabled services (together, the Platform) that allows colleges and universities to deliver online degree programs. The Company’s SaaS technology consists of a learning environment (Online Campus), which acts as the hub for all student and faculty academic and social interaction, and a suite of integrated applications, which the Company uses to launch, operate and support the Company’s clients’ programs. The Company also provides a suite of technology-enabled services optimized with data analysis and machine learning techniques that support the complete lifecycle of a higher education program, including attracting students, advising students through the admissions application process, providing technical, success coaching and other support, facilitating accessibility to individuals with disabilities, and facilitating in-program field placements.
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