VMware (NYSE: VMW) 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 earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Insider and Institutional Ownership
22.5% of VMware shares are held by institutional investors. Comparatively, 84.9% of EPIQ Systems shares are held by institutional investors. 34.4% of VMware shares are held by insiders. Comparatively, 10.1% of EPIQ Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
EPIQ Systems pays an annual dividend of $0.36 per share. VMware 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 VMware and EPIQ Systems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|VMware||$7.92 billion||6.47||$570.00 million||$3.76||33.83|
VMware has higher revenue and earnings than EPIQ Systems. EPIQ Systems is trading at a lower price-to-earnings ratio than VMware, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for VMware and EPIQ Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
VMware presently has a consensus target price of $131.28, suggesting a potential upside of 3.22%.
This table compares VMware and EPIQ Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
VMware beats EPIQ Systems on 8 of the 10 factors compared between the two stocks.
VMware, Inc. is an information technology (IT) company. The Company is engaged in development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. The Company offers various products, which allow organizations to manage IT resources across private clouds and multi-cloud, multi-device environments by leveraging synergies across three product categories: Software-Defined Data Center (SDDC), Hybrid Cloud Computing and End-User Computing (EUC). The SDDC is designed to transform and modernize the data center into an on-demand service that addresses application requirements by abstracting, pooling and automating the services that are required from the underlying hardware. The Company provides many storage and availability products to offer data storage and protection options to all applications running on the vSphere platform.
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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