Analyzing ASGN (NYSE:ASGN) and EPAM Systems (NYSE:EPAM)

EPAM Systems (NYSE:EPAM) and ASGN (NYSE:ASGN) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Insider and Institutional Ownership

91.6% of EPAM Systems shares are held by institutional investors. Comparatively, 95.4% of ASGN shares are held by institutional investors. 4.3% of EPAM Systems shares are held by company insiders. Comparatively, 3.4% of ASGN shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares EPAM Systems and ASGN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EPAM Systems	7.01%	13.16%	10.15%
ASGN	3.28%	11.42%	5.68%

Valuation and Earnings

This table compares EPAM Systems and ASGN”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPAM Systems	$5.30 billion	2.28	$454.53 million	$6.55	33.34
ASGN	$4.10 billion	0.53	$175.20 million	$2.97	17.19

EPAM Systems has higher revenue and earnings than ASGN. ASGN is trading at a lower price-to-earnings ratio than EPAM Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for EPAM Systems and ASGN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPAM Systems	0	6	10	1	2.71
ASGN	3	3	2	0	1.88

EPAM Systems currently has a consensus target price of $210.53, suggesting a potential downside of 3.58%. ASGN has a consensus target price of $49.67, suggesting a potential downside of 2.72%. Given ASGN’s higher probable upside, analysts clearly believe ASGN is more favorable than EPAM Systems.

Volatility & Risk

EPAM Systems has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500. Comparatively, ASGN has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Summary

EPAM Systems beats ASGN on 13 of the 15 factors compared between the two stocks.

About EPAM Systems

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; infrastructure management services, such as software development, testing, performance tuning, deployment, maintenance, and support services. It also provides operation solutions comprising integrated engineering practices and smart automation services. In addition, the company offers business, experience, technology, data, and technical advisory consulting services; and digital and service design solutions, which comprise strategy, design, creative, and program management services, as well as physical product development, such as artificial intelligence, robotics, and virtual reality. The company serves the financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, and other industries EPAM Systems, Inc. was founded in 1993 and is headquartered in Newtown, Pennsylvania.

About ASGN

ASGN Incorporated engages in the provision of information technology (IT) services and solutions in the technology, digital, and creative fields for commercial and government sectors in the United States, Canada, and Europe. It operates through two segments: Commercial and Federal Government. The Commercial Segment provides consulting, creative digital marketing, and permanent placement services primarily to enterprise clients. This segment also offers workforce mobilization, modern enterprise, and digital innovation IT consulting services; and cloud, data and analytics, and digital transformation solutions. The Federal Government Segment provides mission-critical solutions to the department of defense, intelligence communities, and federal civilian agencies. This segment offers cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, and science and engineering solutions. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018. ASGN Incorporated was founded in 1985 and is based in Glen Allen, Virginia.