Perficient (NASDAQ:PRFT) and EPAM Systems (NYSE:EPAM) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.
Volatility & Risk
Perficient has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, EPAM Systems has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.
This table compares Perficient and EPAM Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
89.6% of Perficient shares are held by institutional investors. Comparatively, 93.6% of EPAM Systems shares are held by institutional investors. 3.5% of Perficient shares are held by company insiders. Comparatively, 5.3% of EPAM Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Perficient and EPAM Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Perficient||$498.38 million||1.91||$24.56 million||$1.21||23.69|
|EPAM Systems||$1.84 billion||4.94||$240.26 million||$3.91||42.97|
EPAM Systems has higher revenue and earnings than Perficient. Perficient is trading at a lower price-to-earnings ratio than EPAM Systems, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Perficient and EPAM Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Perficient currently has a consensus target price of $32.00, indicating a potential upside of 11.61%. EPAM Systems has a consensus target price of $150.82, indicating a potential downside of 10.23%. Given Perficient’s stronger consensus rating and higher possible upside, research analysts plainly believe Perficient is more favorable than EPAM Systems.
EPAM Systems beats Perficient on 12 of the 14 factors compared between the two stocks.
Perficient, Inc. provides information technology and management consulting services in the United States. The company designs, builds, and delivers solutions using middleware software products developed by third-party vendors. Its solutions include portals and collaboration, such as searchable data systems, collaborative systems for process improvement, transaction processing, unified and extended reporting, and other services; and platform implementations services, including application server selection, architecture planning, installation and configuration, clustering for availability, performance assessment and issue remediation, security, and technology migrations. The company also offers management consulting services in the areas of organizational change management, business analytics, project management, process excellence, and other; and cloud services comprising architecture, business value and health checks assessments, strategy and road maps, and vendor evaluation and selection services. In addition, it provides product configuration digital marketing services, including search engine marketing, user experience and design, and conversion rate optimization; commerce solutions; and content management solutions. Further, the company offers business analytics; custom applications; business integration; business process management; customer relationship management; enterprise data and business intelligence; enterprise performance management; DevOps; and enterprise mobile solutions. It serves the healthcare, financial services, automotive and transport products, retail and consumer goods, manufacturing, electronics and computer hardware, telecommunications, business services and leisure, media and entertainment, and energy and utilities markets. Perficient, Inc. was founded in 1997 and is headquartered in St. Louis, Missouri.
About EPAM Systems
EPAM Systems, Inc. provides software product development and digital platform engineering services primarily in North America, Europe, Asia, and Australia. It offers software product development services, including product research, customer experience design, prototyping, program management, component design and integration, lifecycle software testing, product deployment, end-user customization, performance tuning, product support and maintenance, managed services, and porting and cross-platform migration. The company provides custom application development services, such as business and technical requirement analysis, user experience design, solution architecture creation and validation, development, component design and integration, quality assurance and testing, deployment, performance tuning, support and maintenance, legacy applications re-engineering/refactoring, porting and cross-platform migration, and documentation. It also offers application testing services, including software application testing, testing for enterprise IT, and consulting services; application maintenance and support services, such as incident management, fault investigation diagnosis, work-around provision, application bug fixes, release management, enhancements, and third-party maintenance; and infrastructure management services comprising application, database, network, server, storage, and systems operations management, as well as incident notification and resolutions. In addition, it provides enterprise information management services. It serves customers in financial service, travel and consumer, software, hi-tech, media and entertainment, and life sciences and healthcare industries. The company was founded in 1993 and is headquartered in Newtown, Pennsylvania.
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