KARO
Karooooo Ltd.
Software - Application
Market Cap$1.55B
5Y Perf.+29.0%
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Stock Comparison
KARO vs SPNS
Revenue, margins, valuation, and 5-year total return — side by side.
SPNS
Sapiens International Corporation N.V.
Software - Application
Market Cap$2.43B
5Y Perf.+33.7%
KARO vs SPNS — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | KARO | SPNS |
|---|---|---|
| Industry | Software - Application | Software - Application |
| Market Cap | $1.55B | $2.43B |
| Revenue (TTM) | $5.24B | $564M |
| Net Income (TTM) | $1.02B | $64M |
| Gross Margin | 69.3% | 44.3% |
| Operating Margin | 27.7% | 13.7% |
| Forward P/E | 1.5x | 27.9x |
| Total Debt | $728M | $64M |
| Cash & Equiv. | $1.05B | $164M |
KARO vs SPNS — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
KARO
SPNS
| Stock | Apr 21 | May 26 | Return |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 100 | 129.0 | +29.0% |
| Sapiens Internation… (SPNS) | 100 | 133.7 | +33.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: KARO vs SPNS
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: KARO leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Sapiens International Corporation N.V. is the stronger pick specifically for capital preservation and lower volatility and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
KARO
Karooooo Ltd.
The Income Pick
KARO carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 4 yrs, beta 1.09, yield 2.5%
- Rev growth 8.6%, EPS growth 22.7%, 3Y rev CAGR 18.5%
- PEG 0.09 vs SPNS's 1.40
Best for: income & stability and growth exposure
SPNS
Sapiens International Corporation N.V.
The Long-Run Compounder
SPNS is the clearest fit if your priority is long-term compounding and sleep-well-at-night.
- 301.1% 10Y total return vs KARO's 58.8%
- Lower volatility, beta 0.45, Low D/E 13.3%, current ratio 2.24x
- Beta 0.45, yield 1.3%, current ratio 2.24x
Best for: long-term compounding and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | KARO | 8.6% revenue growth vs SPNS's 5.4% |
| Value | KARO | Lower P/E (1.5x vs 27.9x), PEG 0.09 vs 1.40 |
| Quality / Margins | KARO | 19.5% margin vs SPNS's 11.4% |
| Stability / Safety | SPNS | Beta 0.45 vs KARO's 1.09, lower leverage |
| Dividends | KARO | 2.5% yield, 4-year raise streak, vs SPNS's 1.3% |
| Momentum (1Y) | SPNS | +53.4% vs KARO's +15.9% |
| Efficiency (ROA) | KARO | 19.6% ROA vs SPNS's 8.9%, ROIC 34.4% vs 17.4% |
KARO vs SPNS — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
FY 2023
KARO vs SPNS — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLKAROLAGGINGSPNS
SPNSSapiens International…
2leads
KAROKarooooo Ltd.
4leads
6 Total Categories
CATEGORYLEADERvs SPNSMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
KARO6/6
Valuation MetricsMultiples, price ratios, and targets
KARO4/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
KARO5/9
Total Returns1Y, 3Y, 5Y total returns with dividends
SPNS3/5
Risk & VolatilityBeta, volatility, and downside exposure
SPNS2/2
Analyst OutlookRatings, price targets, and dividends
KARO2/2
Income & Cash Flow (Last 12 Months)
KARO leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
KARO is the larger business by revenue, generating $5.2B annually — 9.3x SPNS's $564M. KARO is the more profitable business, keeping 19.5% of every revenue dollar as net income compared to SPNS's 11.4%. On growth, KARO holds the edge at +17.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | KAROKarooooo Ltd. | SPNSSapiens Internati… |
|---|---|---|
| RevenueTrailing 12 months | $5.2B | $564M |
| EBITDAEarnings before interest/tax | $2.2B | $93M |
| Net IncomeAfter-tax profit | $1.0B | $64M |
| Free Cash FlowCash after capex | $0 | $72M |
| Gross MarginGross profit ÷ Revenue | +69.3% | +44.3% |
| Operating MarginEBIT ÷ Revenue | +27.7% | +13.7% |
| Net MarginNet income ÷ Revenue | +19.5% | +11.4% |
| FCF MarginFCF ÷ Revenue | +20.3% | +12.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.8% | +11.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +9.2% | -24.2% |
KARO leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
KARO leads this category, winning 4 of 7 comparable metrics.
Valuation Metrics
At 27.7x trailing earnings, KARO trades at a 18% valuation discount to SPNS's 33.7x P/E. Adjusting for growth (PEG ratio), SPNS offers better value at 1.69x vs KARO's 1.73x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | KAROKarooooo Ltd. | SPNSSapiens Internati… |
|---|---|---|
| Market CapShares × price | $1.6B | $2.4B |
| Enterprise ValueMkt cap + debt − cash | $1.5B | $2.3B |
| Trailing P/EPrice ÷ TTM EPS | 27.67x | 33.68x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.48x | 27.85x |
| PEG RatioP/E ÷ EPS growth rate | 1.73x | 1.69x |
| EV / EBITDAEnterprise value multiple | 12.04x | 22.11x |
| Price / SalesMarket cap ÷ Revenue | 5.58x | 4.48x |
| Price / BookPrice ÷ Book value/share | 7.82x | 5.09x |
| Price / FCFMarket cap ÷ FCF | 27.43x | 33.63x |
KARO leads this category, winning 4 of 7 comparable metrics.
Profitability & Efficiency
KARO leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
KARO delivers a 31.6% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $13 for SPNS. SPNS carries lower financial leverage with a 0.13x debt-to-equity ratio, signaling a more conservative balance sheet compared to KARO's 0.22x. On the Piotroski fundamental quality scale (0–9), SPNS scores 8/9 vs KARO's 6/9, reflecting strong financial health.
| Metric | KAROKarooooo Ltd. | SPNSSapiens Internati… |
|---|---|---|
| ROE (TTM)Return on equity | +31.6% | +12.9% |
| ROA (TTM)Return on assets | +19.6% | +8.9% |
| ROICReturn on invested capital | +34.4% | +17.4% |
| ROCEReturn on capital employed | +37.6% | +16.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 8 |
| Debt / EquityFinancial leverage | 0.22x | 0.13x |
| Net DebtTotal debt minus cash | -$319M | -$100M |
| Cash & Equiv.Liquid assets | $1.0B | $164M |
| Total DebtShort + long-term debt | $728M | $64M |
| Interest CoverageEBIT ÷ Interest expense | 28.64x | 228.41x |
KARO leads this category, winning 5 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
SPNS leads this category, winning 3 of 5 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in SPNS five years ago would be worth $16,401 today (with dividends reinvested), compared to $13,735 for KARO. Over the past 12 months, SPNS leads with a +53.4% total return vs KARO's +15.9%. The 3-year compound annual growth rate (CAGR) favors KARO at 34.4% vs SPNS's 26.2% — a key indicator of consistent wealth creation.
| Metric | KAROKarooooo Ltd. | SPNSSapiens Internati… |
|---|---|---|
| YTD ReturnYear-to-date | +12.4% | — |
| 1-Year ReturnPast 12 months | +15.9% | +53.4% |
| 3-Year ReturnCumulative with dividends | +142.6% | +100.9% |
| 5-Year ReturnCumulative with dividends | +37.4% | +64.0% |
| 10-Year ReturnCumulative with dividends | +58.8% | +301.1% |
| CAGR (3Y)Annualised 3-year return | +34.4% | +26.2% |
SPNS leads this category, winning 3 of 5 comparable metrics.
Risk & Volatility
SPNS leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
SPNS is the less volatile stock with a 0.45 beta — it tends to amplify market swings less than KARO's 1.09 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SPNS currently trades 99.8% from its 52-week high vs KARO's 79.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | KAROKarooooo Ltd. | SPNSSapiens Internati… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.09x | 0.45x |
| 52-Week HighHighest price in past year | $63.36 | $43.52 |
| 52-Week LowLowest price in past year | $41.25 | $26.14 |
| % of 52W HighCurrent price vs 52-week peak | +79.2% | +99.8% |
| RSI (14)Momentum oscillator 0–100 | 57.0 | 69.6 |
| Avg Volume (50D)Average daily shares traded | 63K | 0 |
SPNS leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
KARO leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates KARO as "Buy" and SPNS as "Hold". Consensus price targets imply 23.5% upside for KARO (target: $62) vs -12.5% for SPNS (target: $38). For income investors, KARO offers the higher dividend yield at 2.45% vs SPNS's 1.30%.
| Metric | KAROKarooooo Ltd. | SPNSSapiens Internati… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $62.00 | $38.00 |
| # AnalystsCovering analysts | 4 | 10 |
| Dividend YieldAnnual dividend ÷ price | +2.5% | +1.3% |
| Dividend StreakConsecutive years of raises | 4 | 1 |
| Dividend / ShareAnnual DPS | $20.21 | $0.57 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | 0.0% |
KARO leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
KARO leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). SPNS leads in 2 (Total Returns, Risk & Volatility).
Best OverallKarooooo Ltd. (KARO)Leads 4 of 6 categories
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KARO vs SPNS: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is KARO or SPNS a better buy right now?
For growth investors, Karooooo Ltd.
(KARO) is the stronger pick with 8. 6% revenue growth year-over-year, versus 5. 4% for Sapiens International Corporation N. V. (SPNS). Karooooo Ltd. (KARO) offers the better valuation at 27. 7x trailing P/E (1. 5x forward), making it the more compelling value choice. Analysts rate Karooooo Ltd. (KARO) a "Buy" — based on 4 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — KARO or SPNS?
On trailing P/E, Karooooo Ltd.
(KARO) is the cheapest at 27. 7x versus Sapiens International Corporation N. V. at 33. 7x. On forward P/E, Karooooo Ltd. is actually cheaper at 1. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Karooooo Ltd. wins at 0. 09x versus Sapiens International Corporation N. V. 's 1. 40x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — KARO or SPNS?
Over the past 5 years, Sapiens International Corporation N.
V. (SPNS) delivered a total return of +64. 0%, compared to +37. 4% for Karooooo Ltd. (KARO). Over 10 years, the gap is even starker: SPNS returned +301. 1% versus KARO's +58. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — KARO or SPNS?
By beta (market sensitivity over 5 years), Sapiens International Corporation N.
V. (SPNS) is the lower-risk stock at 0. 45β versus Karooooo Ltd. 's 1. 09β — meaning KARO is approximately 140% more volatile than SPNS relative to the S&P 500. On balance sheet safety, Sapiens International Corporation N. V. (SPNS) carries a lower debt/equity ratio of 13% versus 22% for Karooooo Ltd. — giving it more financial flexibility in a downturn.
05Which is growing faster — KARO or SPNS?
By revenue growth (latest reported year), Karooooo Ltd.
(KARO) is pulling ahead at 8. 6% versus 5. 4% for Sapiens International Corporation N. V. (SPNS). On earnings-per-share growth, the picture is similar: Karooooo Ltd. grew EPS 22. 7% year-over-year, compared to 15. 2% for Sapiens International Corporation N. V.. Over a 3-year CAGR, KARO leads at 18. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — KARO or SPNS?
Karooooo Ltd.
(KARO) is the more profitable company, earning 20. 2% net margin versus 13. 3% for Sapiens International Corporation N. V. — meaning it keeps 20. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: KARO leads at 28. 7% versus 16. 8% for SPNS. At the gross margin level — before operating expenses — KARO leads at 70. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is KARO or SPNS more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.
By this metric, Karooooo Ltd. (KARO) is the more undervalued stock at a PEG of 0. 09x versus Sapiens International Corporation N. V. 's 1. 40x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Karooooo Ltd. (KARO) trades at 1. 5x forward P/E versus 27. 9x for Sapiens International Corporation N. V. — 26. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for KARO: 23. 5% to $62. 00.
08Which pays a better dividend — KARO or SPNS?
All stocks in this comparison pay dividends.
Karooooo Ltd. (KARO) offers the highest yield at 2. 5%, versus 1. 3% for Sapiens International Corporation N. V. (SPNS).
09Is KARO or SPNS better for a retirement portfolio?
For long-horizon retirement investors, Sapiens International Corporation N.
V. (SPNS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 45), 1. 3% yield, +301. 1% 10Y return). Both have compounded well over 10 years (SPNS: +301. 1%, KARO: +58. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between KARO and SPNS?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(KARO: 17.8% · SPNS: 11.2%)Net Margin>
%
(KARO: 19.5% · SPNS: 11.4%)P/E Ratio<
x
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