Head-To-Head Contrast: EPAM Systems (NYSE:EPAM) vs. Vertiv (NYSE:VRT)

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

Valuation and Earnings

This table compares Vertiv and EPAM Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertiv	$8.01 billion	7.65	$495.80 million	$2.09	76.77
EPAM Systems	$4.73 billion	1.82	$454.53 million	$7.01	21.99

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vertiv	8.93%	51.64%	13.69%
EPAM Systems	7.91%	14.00%	10.89%

Institutional & Insider Ownership

89.9% of Vertiv shares are owned by institutional investors. Comparatively, 91.6% of EPAM Systems shares are owned by institutional investors. 5.0% of Vertiv shares are owned by company insiders. Comparatively, 4.3% of EPAM Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Vertiv and EPAM Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertiv	1	7	19	1	2.71
EPAM Systems	1	4	13	0	2.67

Vertiv presently has a consensus target price of $144.95, suggesting a potential downside of 9.66%. EPAM Systems has a consensus target price of $224.06, suggesting a potential upside of 45.37%. Given EPAM Systems’ higher probable upside, analysts clearly believe EPAM Systems is more favorable than Vertiv.

Risk & Volatility

Vertiv has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, EPAM Systems has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Summary

Vertiv beats EPAM Systems on 12 of the 15 factors compared between the two stocks.

About Vertiv

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.

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.