Aspen Technology (AZPN) and EPIQ Systems (EPIQ) Financial Review

Aspen Technology (NASDAQ: AZPN) and EPIQ Systems (NASDAQ:EPIQ) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Earnings and Valuation

This table compares Aspen Technology and EPIQ Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aspen Technology $482.94 million 11.52 $162.19 million $2.15 35.66
EPIQ Systems N/A N/A N/A ($0.44) N/A

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

Profitability

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

Net Margins Return on Equity Return on Assets
Aspen Technology 33.35% -66.74% 67.34%
EPIQ Systems -3.96% -7.36% -2.71%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Aspen Technology and EPIQ Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aspen Technology 1 5 3 0 2.22
EPIQ Systems 0 0 0 0 N/A

Aspen Technology currently has a consensus price target of $65.00, suggesting a potential downside of 15.22%.

Insider and Institutional Ownership

84.9% of EPIQ Systems shares are held by institutional investors. 0.6% of Aspen Technology shares are held by company insiders. Comparatively, 10.1% of EPIQ Systems shares are held by company 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.

Dividends

EPIQ Systems pays an annual dividend of $0.36 per share. Aspen Technology does not pay a dividend. EPIQ Systems pays out -81.8% of its earnings in the form of a dividend.

Summary

Aspen Technology beats EPIQ Systems on 6 of the 10 factors compared between the two stocks.

About Aspen Technology

Aspen Technology, Inc. is a global provider of process optimization software solutions designed to manage and optimize plant and process design, operational performance, and supply chain planning. The Company’s aspenONE software and related services have been developed specifically for companies in the process industries, including the energy, chemicals, and engineering and construction industries. It operates through two segments, including subscription and software, which provides licensing of process optimization software solutions and associated support services, and services, which includes professional services and training. It has developed applications to design and optimize processes across the business areas, including engineering, manufacturing and supply chain. Its products include Aspen HYSYS, Aspen Economic Evaluation, Aspen Info Plus.21, Aspen PIMS Advanced Optimization, Aspen Collaborative Demand Manager and Aspen Supply Planner.

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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