Contrasting EPAM Systems (NYSE:EPAM) & Unisys (NYSE:UIS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Unisys	-4.16%	-12.55%	1.56%
EPAM Systems	7.01%	13.16%	10.15%

Insider and Institutional Ownership

86.9% of Unisys shares are held by institutional investors. Comparatively, 91.6% of EPAM Systems shares are held by institutional investors. 7.0% of Unisys shares are held by company insiders. Comparatively, 4.3% of EPAM Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Unisys has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, EPAM Systems has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Unisys and EPAM Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unisys	1	2	2	0	2.20
EPAM Systems	1	4	12	1	2.72

Unisys currently has a consensus target price of $5.88, suggesting a potential upside of 122.96%. EPAM Systems has a consensus target price of $213.81, suggesting a potential upside of 10.84%. Given Unisys’ higher possible upside, equities analysts plainly believe Unisys is more favorable than EPAM Systems.

Earnings & Valuation

This table compares Unisys and EPAM Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unisys	$1.92 billion	0.10	-$193.40 million	($4.62)	-0.57
EPAM Systems	$4.73 billion	2.25	$454.53 million	$6.55	29.45

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

Summary

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

About Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.

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.