Endava (NYSE:DAVA) and TaskUs (NASDAQ:TASK) Head to Head Review
by Kim Johansen · The Markets DailyEndava (NYSE:DAVA – Get Free Report) and TaskUs (NASDAQ:TASK – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.
Profitability
This table compares Endava and TaskUs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Endava | -0.51% | 5.16% | 3.23% |
| TaskUs | 8.64% | 22.52% | 12.29% |
Risk and Volatility
Endava has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, TaskUs has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500.
Insider and Institutional Ownership
62.2% of Endava shares are held by institutional investors. Comparatively, 44.6% of TaskUs shares are held by institutional investors. 18.8% of Endava shares are held by company insiders. Comparatively, 30.6% of TaskUs shares are held by company 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.
Valuation & Earnings
This table compares Endava and TaskUs”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Endava | $999.23 million | 0.24 | $27.45 million | ($0.11) | -39.59 |
| TaskUs | $1.18 billion | 0.51 | $102.28 million | $1.11 | 5.99 |
TaskUs has higher revenue and earnings than Endava. Endava is trading at a lower price-to-earnings ratio than TaskUs, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Endava and TaskUs, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Endava | 1 | 5 | 4 | 0 | 2.30 |
| TaskUs | 1 | 6 | 1 | 1 | 2.22 |
Endava presently has a consensus target price of $14.14, suggesting a potential upside of 224.75%. TaskUs has a consensus target price of $14.25, suggesting a potential upside of 114.29%. Given Endava’s stronger consensus rating and higher probable upside, analysts plainly believe Endava is more favorable than TaskUs.
Summary
TaskUs beats Endava on 11 of the 15 factors compared between the two stocks.
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.
About TaskUs
TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.