EPAM Systems (NYSE: EPAM) and Computer Programs & Systems (NASDAQ:CPSI) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
Earnings and Valuation
This table compares EPAM Systems and Computer Programs & Systems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EPAM Systems||$1.45 billion||4.91||$72.76 million||$2.85||46.76|
|Computer Programs & Systems||$276.93 million||1.71||-$17.10 million||$1.33||25.23|
Computer Programs & Systems pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. EPAM Systems does not pay a dividend. Computer Programs & Systems pays out 30.1% of its earnings in the form of a dividend.
This is a summary of current ratings and target prices for EPAM Systems and Computer Programs & Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Computer Programs & Systems||1||4||1||0||2.00|
EPAM Systems currently has a consensus price target of $124.80, suggesting a potential downside of 6.36%. Computer Programs & Systems has a consensus price target of $29.25, suggesting a potential downside of 12.82%. Given EPAM Systems’ stronger consensus rating and higher probable upside, equities analysts plainly believe EPAM Systems is more favorable than Computer Programs & Systems.
This table compares EPAM Systems and Computer Programs & Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Computer Programs & Systems||-4.83%||14.77%||6.60%|
Insider and Institutional Ownership
91.0% of EPAM Systems shares are held by institutional investors. Comparatively, 90.9% of Computer Programs & Systems shares are held by institutional investors. 5.3% of EPAM Systems shares are held by insiders. Comparatively, 4.8% of Computer Programs & Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
EPAM Systems has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Computer Programs & Systems has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.
EPAM Systems beats Computer Programs & Systems on 15 of the 16 factors compared between the two stocks.
About EPAM Systems
EPAM Systems, Inc. provides software product development and digital platform engineering services primarily in North America, Europe, Asia, and Australia. It offers software product development services, including product research, customer experience design, prototyping, program management, component design and integration, lifecycle software testing, product deployment, end-user customization, performance tuning, product support and maintenance, managed services, and porting and cross-platform migration. The company provides custom application development services, such as business and technical requirement analysis, user experience design, solution architecture creation and validation, development, component design and integration, quality assurance and testing, deployment, performance tuning, support and maintenance, legacy applications re-engineering/refactoring, porting and cross-platform migration, and documentation. It also offers application testing services, including software application testing, testing for enterprise IT, and consulting services; application maintenance and support services, such as incident management, fault investigation diagnosis, work-around provision, application bug fixes, release management, enhancements, and third-party maintenance; and infrastructure management services comprising application, database, network, server, storage, and systems operations management, as well as incident notification and resolutions. In addition, it provides enterprise information management services. It serves customers in financial service, travel and consumer, software, hi-tech, media and entertainment, and life sciences and healthcare industries. The company was founded in 1993 and is headquartered in Newtown, Pennsylvania.
About Computer Programs & Systems
Computer Programs and Systems, Inc. provides healthcare information technology solutions and services in the United States and the Caribbean nation of St. Maarten. Its software systems include patient management software that enables a hospital to identify a patient at various points in the healthcare delivery system, as well as helps to collect and maintain patient information throughout the process of patient care; and financial accounting software, which offers business office applications to track and coordinate information needed for managerial decision-making. The company also provides clinical software that automates record keeping and reporting for various clinical functions; patient care applications; and enterprise applications that support its products for use in various areas of the hospital. In addition, it offers Healthland Centriq, a Web-based electronic health record platform that centralizes data from various care areas; and Healthland Classic that offers a suite of integrated applications for managing operations, resources, and people, as well as for ambulatory information management solutions. Further, the company provides software solutions that promote data-driven clinical and financial outcomes for customers in the post-acute care industry; software application support, hardware maintenance, and education and related services; business management, consulting, and managed information technology services for community healthcare enterprises. Additionally, it provides Software as a Service based healthcare revenue cycle management solutions; system implementation and training services; and forms and office supplies. It serves community hospitals and physician clinics, skilled nursing and assisted living facilities, and small specialty hospitals. Computer Programs and Systems, Inc. was founded in 1979 and is based in Mobile, Alabama.
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