Quality Systems (NASDAQ: QSII) and Sapient Corp (NASDAQ:SAPE) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Quality Systems and Sapient Corp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quality Systems | 1 | 7 | 1 | 0 | 2.00 |
| Sapient Corp | 0 | 0 | 0 | 0 | N/A |
Quality Systems currently has a consensus price target of $15.30, suggesting a potential downside of 0.39%. Given Quality Systems’ higher probable upside, equities research analysts plainly believe Quality Systems is more favorable than Sapient Corp.
Profitability
This table compares Quality Systems and Sapient Corp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quality Systems | 2.98% | 5.05% | 3.25% |
| Sapient Corp | 6.13% | 14.00% | 8.96% |
Insider and Institutional Ownership
66.9% of Quality Systems shares are held by institutional investors. 17.9% of Quality Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Quality Systems and Sapient Corp’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Quality Systems | $518.34 million | 1.88 | $61.27 million | $0.36 | 42.67 |
| Sapient Corp | N/A | N/A | N/A | N/A | N/A |
Quality Systems has higher revenue and earnings than Sapient Corp.
Summary
Quality Systems beats Sapient Corp on 5 of the 8 factors compared between the two stocks.
Quality Systems Company Profile
Quality Systems, Inc. (QSI) primarily, through its NextGen Healthcare subsidiary, provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices. The Company operates through three segments: the NextGen Division, the RCM Services Division and the QSI Dental Division. It also provides implementation, training, support and maintenance for software and complementary services, such as revenue cycle management (RCM) and electronic data interchange (EDI). The Company’s clients include single and small practice physicians, networks of practices, such as physician hospital organizations (PHOs), management service organizations (MSOs), accountable care organizations (ACOs), ambulatory care centers, community health centers, and medical and dental schools.
Sapient Corp Company Profile
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).
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