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

Analyst Ratings

This is a breakdown of current recommendations and price targets for EPAM Systems and Limelight Networks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EPAM Systems 0 0 11 0 3.00
Limelight Networks 0 1 3 0 2.75

EPAM Systems currently has a consensus target price of $91.27, indicating a potential upside of 11.58%. Limelight Networks has a consensus target price of $3.43, indicating a potential downside of 4.63%. Given EPAM Systems’ stronger consensus rating and higher possible upside, research analysts clearly believe EPAM Systems is more favorable than Limelight Networks.

Insider & Institutional Ownership

87.9% of EPAM Systems shares are held by institutional investors. Comparatively, 69.0% of Limelight Networks shares are held by institutional investors. 6.2% of EPAM Systems shares are held by insiders. Comparatively, 37.6% of Limelight Networks shares are held by 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.

Valuation and Earnings

This table compares EPAM Systems and Limelight Networks’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EPAM Systems $1.29 billion 3.33 $183.54 million $2.07 39.52
Limelight Networks $173.36 million 2.27 $6.99 million ($0.14) -25.71

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

Risk & Volatility

EPAM Systems has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Limelight Networks has a beta of 2.53, suggesting that its share price is 153% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
EPAM Systems 8.71% 15.12% 12.73%
Limelight Networks -8.65% -5.03% -3.39%

Summary

EPAM Systems beats Limelight Networks on 11 of the 13 factors compared between the two stocks.

EPAM Systems Company Profile

EPAM Systems, Inc. is a g provider of software product development and digital platform engineering services to clients located primarily in North America, Europe, Asia and Australia. The Company’s service offerings cover the full software product development lifecycle from digital strategy and customer experience design to enterprise application platforms implementation and program management services and from complex software development services to maintenance, support, custom application development, application testing, and infrastructure management. Its service offerings include Software Product Development Services, Custom Application Development Services, Application Testing Services, Enterprise Application Platforms, Application Maintenance and Support, and Infrastructure Management Services. It offers its solutions and services to industries, such as financial services, media and entertainment, travel and consumer, software and hi-tech, and life sciences and healthcare.

Limelight Networks Company Profile

Limelight Networks, Inc. operates a distributed network and provides a suite of integrated services marketed as the Limelight Orchestrate Platform. The Company is engaged in providing content delivery and related services and solutions for global businesses to help them deliver their digital content across Internet, mobile, and social channels. Its services include content delivery services, mobile delivery services, video content management services, performance services, cloud-based storage services and cloud-based content security services. Its solutions include software and device manufacturers, media and broadcasters, and gaming. Limelight services incorporate content and application security, file management, video transformation, distributed storage functionality, and the analytics and reporting associated with them. The Company operates in three geographic areas: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific.

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