Apptio (NASDAQ: APTI) and Luxoft Holding (NYSE:LXFT) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitabiliy, risk, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Apptio and Luxoft Holding, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apptio 0 2 5 0 2.71
Luxoft Holding 0 3 3 0 2.50

Apptio currently has a consensus target price of $23.00, suggesting a potential upside of 37.15%. Luxoft Holding has a consensus target price of $67.50, suggesting a potential upside of 10.20%. Given Apptio’s stronger consensus rating and higher possible upside, equities analysts plainly believe Apptio is more favorable than Luxoft Holding.

Institutional and Insider Ownership

25.1% of Apptio shares are held by institutional investors. Comparatively, 98.1% of Luxoft Holding shares are held by institutional investors. 43.2% of Apptio 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.

Profitability

This table compares Apptio and Luxoft Holding’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apptio N/A N/A N/A
Luxoft Holding 7.97% 21.06% 15.59%

Valuation & Earnings

This table compares Apptio and Luxoft Holding’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Apptio $167.66 million 3.87 -$23.17 million N/A N/A
Luxoft Holding $785.56 million 1.66 $96.86 million $1.85 33.11

Luxoft Holding has higher revenue and earnings than Apptio.

Summary

Luxoft Holding beats Apptio on 6 of the 11 factors compared between the two stocks.

Apptio Company Profile

Apptio, Inc. is a provider of technology business management (TBM) solutions. The Company’s cloud-based platform and software as a service (SaaS) applications enable information technology (IT) leaders to analyze, optimize and plan technology investments, and benchmark the financial and operational performance against peers. It operates in the United States, the United Kingdom, Germany, Denmark, the Netherlands, Australia, Canada, France and Singapore. Its TBM solutions consist of a cloud-based platform and SaaS applications, which include Cost Transparency, IT Benchmarking, Business Insights, Bill of IT and IT Planning. It serves a range of industries, including financial services, professional services, technology, energy, consumer goods, manufacturing, healthcare, media, retail and transportation, as well as federal and state government agencies. Its cloud-based data and analytics platform aggregates, cleanses and correlates customer data from a range of disparate sources.

Luxoft Holding Company Profile

Luxoft Holding, Inc., is a provider of software development services and information technology (IT) solutions to a global client base consisting primarily of large multinational corporations. The Company’s software development services consist of custom software development and support, product engineering and testing, and technology consulting. The Company‚Äôs solutions are based on its proprietary products and platforms that directly impact its clients’ business outcomes and efficiently deliver continuous innovation. The Company develops its solutions and delivers its services from 34 cities with delivery centers worldwide. Its products and platforms include Horizon, SuperCloud, Twister, iStockTrack, TEORA, Populus, AllView, CVNAR and Retail Engagement Suite (RES) in Internet of Things (IoT) space.

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