Comparing EPIQ Systems (EPIQ) and Barracuda Networks (CUDA)

EPIQ Systems (NASDAQ: EPIQ) and Barracuda Networks (NYSE:CUDA) are both it services & consulting – nec companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
EPIQ Systems -3.96% -7.36% -2.71%
Barracuda Networks 4.09% 74.59% 2.98%

Dividends

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

Analyst Ratings

This is a breakdown of current ratings for EPIQ Systems and Barracuda Networks, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EPIQ Systems 0 0 0 0 N/A
Barracuda Networks 0 9 3 0 2.25

Barracuda Networks has a consensus price target of $28.51, suggesting a potential upside of 3.48%. Given Barracuda Networks’ higher possible upside, analysts clearly believe Barracuda Networks is more favorable than EPIQ Systems.

Earnings and Valuation

This table compares EPIQ Systems and Barracuda Networks’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EPIQ Systems N/A N/A N/A ($0.44) -37.48
Barracuda Networks $352.65 million 4.19 $10.23 million $0.28 98.39

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

Insider & Institutional Ownership

84.9% of EPIQ Systems shares are held by institutional investors. Comparatively, 75.2% of Barracuda Networks shares are held by institutional investors. 10.1% of EPIQ Systems shares are held by insiders. Comparatively, 13.9% of Barracuda Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Barracuda Networks beats EPIQ Systems on 9 of the 12 factors compared between the two stocks.

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.

About Barracuda Networks

Barracuda Networks, Inc. designs and delivers security and data protection solutions. The Company offers cloud-enabled solutions that enable customers to address security threats, manage network performance, and protect and store their data. Its solutions are designed to manage information technology operations for its customers. Its security solutions include Barracuda Email Security, The Barracuda Web Security Gateway, Barracuda NextGen Firewalls, The Barracuda Web Application Firewall, The Barracuda Load Balancer ADC and The Barracuda SSL VPN. Its data protection solutions provide solutions for on-premises and cloud-based archiving and backup. Its data protection solutions include Barracuda Backup, Barracuda Message Archiver and CudaSign. Its solution suites combine its security and data protection offerings into services designed for cloud platforms and managed services environments. Its solution suites include Barracuda Essentials for Office 365 and Intronis ECHOplatform.

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