Informatica (INFA) vs. EPIQ Systems (EPIQ) Financial Analysis

Informatica (NASDAQ: INFA) and EPIQ Systems (NASDAQ:EPIQ) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Informatica and EPIQ Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Informatica 7.21% 7.17% 4.83%
EPIQ Systems -3.96% -7.36% -2.71%

Institutional & Insider Ownership

84.9% of EPIQ Systems shares are held by institutional investors. 10.1% of EPIQ Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Informatica and EPIQ Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Informatica 0 0 0 0 N/A
EPIQ Systems 0 0 0 0 N/A

Dividends

EPIQ Systems pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. Informatica does not pay a dividend. EPIQ Systems pays out -81.8% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Informatica and EPIQ Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Informatica N/A N/A N/A $1.01 48.25
EPIQ Systems N/A N/A N/A ($0.44) -37.48

EPIQ Systems is trading at a lower price-to-earnings ratio than Informatica, indicating that it is currently the more affordable of the two stocks.

About Informatica

Informatica Corporation is an independent provider of enterprise data integration software and services. The Company’s product portfolio centers on data offers a range of solutions, both on-premise and in the cloud, for data integration, data quality, big data, master data management, data security, data exchange and data preparation, among others. The Company licenses its software and provides services to end-user customers in a range of industries, including automotive, energy and utilities, entertainment/media, financial services, healthcare, insurance, manufacturing, public sector, retail, services, technology, telecommunications and travel/transportation. The Company’s products comprise a data integration platform that allows business and Information Technology (IT) executives, architects and managers to provide relevant data to the business. The Informatica Platform, powered by Vibe virtual data machine, handles various types of data integration and data management projects.

About EPIQ Systems

Epiq Systems, Inc. (Epiq) is a provider of professional services and integrated technology for the legal profession. The Company operates in two segments: the Technology segment (Technology), which provides eDiscovery managed services and technology solutions consisting of consulting, collections and forensics, processing, search and review, production of documents and document review services to companies and law firms, and the Bankruptcy and Settlement Administration segment (Bankruptcy and Settlement Administration), which provides managed services and technology solutions that address the needs of its customers with respect to litigation, claims and project administration, compliance matters, controlled disbursements, corporate restructuring, bankruptcy and class action proceedings. Its solutions and professional services cater to a range of client legal matters, including litigation, investigations, financial transactions and regulatory compliance, among others.

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