EPAM Systems (NYSE: EPAM) is one of 197 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its competitors? We will compare EPAM Systems to related companies based on the strength of its profitability, institutional ownership, risk, analyst recommendations, dividends, valuation and earnings.

Profitability

This table compares EPAM Systems and its competitors’ 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%
EPAM Systems Competitors -24.26% -64.95% -4.90%

Risk & Volatility

EPAM Systems has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, EPAM Systems’ competitors have a beta of 1.26, meaning that their average stock price is 26% more volatile than the S&P 500.

Earnings & Valuation

This table compares EPAM Systems and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
EPAM Systems $1.29 billion $183.54 million 40.33
EPAM Systems Competitors $2.11 billion $366.19 million 11.50

EPAM Systems’ competitors have higher revenue and earnings than EPAM Systems. EPAM Systems is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

87.9% of EPAM Systems shares are held by institutional investors. Comparatively, 60.6% of shares of all “IT Services & Consulting” companies are held by institutional investors. 6.2% of EPAM Systems shares are held by insiders. Comparatively, 17.2% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for EPAM Systems and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EPAM Systems 0 0 11 0 3.00
EPAM Systems Competitors 1011 5154 7771 221 2.51

EPAM Systems currently has a consensus target price of $91.27, indicating a potential upside of 9.33%. As a group, “IT Services & Consulting” companies have a potential upside of 2.84%. Given EPAM Systems’ stronger consensus rating and higher probable upside, equities research analysts clearly believe EPAM Systems is more favorable than its competitors.

Summary

EPAM Systems beats its competitors on 8 of the 13 factors compared.

About EPAM Systems

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.

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