Alpha Technology Group (NASDAQ:ATGL) versus Aspen Technology (NASDAQ:AZPN) Financial Analysis

Aspen Technology (NASDAQ:AZPN) and Alpha Technology Group (NASDAQ:ATGL) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

This table compares Aspen Technology and Alpha Technology Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aspen Technology	-2.46%	2.76%	2.50%
Alpha Technology Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Aspen Technology and Alpha Technology Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aspen Technology	0	3	3	0	2.50
Alpha Technology Group	0	0	0	0	N/A

Aspen Technology presently has a consensus target price of $219.50, indicating a potential upside of 14.50%. Given Aspen Technology’s higher probable upside, equities analysts clearly believe Aspen Technology is more favorable than Alpha Technology Group.

Valuation & Earnings

This table compares Aspen Technology and Alpha Technology Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aspen Technology	$1.04 billion	11.63	-$107.76 million	($0.44)	-435.69
Alpha Technology Group	$1.11 million	48.11	-$890,000.00	N/A	N/A

Alpha Technology Group has lower revenue, but higher earnings than Aspen Technology.

Institutional and Insider Ownership

45.7% of Aspen Technology shares are owned by institutional investors. 1.0% of Aspen Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Aspen Technology beats Alpha Technology Group on 7 of the 10 factors compared between the two stocks.

About Aspen Technology

Aspen Technology, Inc. provides industrial software that focuses on helping customers in asset-intensive industries worldwide. The company's solutions address complex environments where it is critical to optimize the asset design, operation, and maintenance lifecycle. Its software is used in performance engineering, modeling and design, supply chain management, predictive and prescriptive maintenance, digital grid management, and industrial data management. The company serves a range of asset-intensive industries, including oil and gas exploration and production; oil and gas processing and distribution; and oil and gas refining and marketing, as well as bulk and specialty chemicals, engineering and construction, power and utilities, metals and mining, and pharmaceuticals. Aspen Technology, Inc. was founded in 1981 and is headquartered in Bedford, Massachusetts. Aspen Technology, Inc. operates as a subsidiary of EMR Worldwide Inc.

About Alpha Technology Group

Alpha Technology Group Limited, through its subsidiaries, provides cloud-based information technology services in Hong Kong. The company primarily offers cloud-based and customized customer relationship management and enterprise resource planning systems; web and mobile application development services; artificial intelligence powered optical character recognition services; and technological support and maintenance, and other services, such as maintaining and enhancing services for systems. It serves customers from various industries, including consulting, real estate, architectural design, carpark management, electronic payment services, logistics, investments, retail, textiles, wholesale and distribution, social services, etc. The company was incorporated in 2022 and is based in Kwun Tong, Hong Kong.