Reviewing EPAM Systems (NYSE:EPAM) & HashiCorp (NASDAQ:HCP)

EPAM Systems (NYSE:EPAMGet Free Report) and HashiCorp (NASDAQ:HCPGet Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Volatility and Risk

EPAM Systems has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, HashiCorp has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for EPAM Systems and HashiCorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EPAM Systems 1 4 11 0 2.63
HashiCorp 0 10 4 0 2.29

EPAM Systems presently has a consensus target price of $315.60, suggesting a potential upside of 26.38%. HashiCorp has a consensus target price of $30.77, suggesting a potential downside of 6.19%. Given EPAM Systems’ stronger consensus rating and higher possible upside, equities research analysts plainly believe EPAM Systems is more favorable than HashiCorp.

Valuation and Earnings

This table compares EPAM Systems and HashiCorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EPAM Systems $4.69 billion 3.09 $417.08 million $7.07 35.32
HashiCorp $583.14 million 11.22 -$190.67 million ($0.98) -33.47

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

Institutional and Insider Ownership

91.6% of EPAM Systems shares are held by institutional investors. Comparatively, 87.8% of HashiCorp shares are held by institutional investors. 4.3% of EPAM Systems shares are held by insiders. Comparatively, 26.1% of HashiCorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares EPAM Systems and HashiCorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EPAM Systems 8.89% 15.53% 12.26%
HashiCorp -32.70% -15.58% -11.55%

Summary

EPAM Systems beats HashiCorp on 12 of the 14 factors compared between the two stocks.

About EPAM Systems

(Get Free Report)

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; infrastructure management services, such as software development, testing, performance tuning, deployment, maintenance, and support services. It also provides operation solutions comprising integrated engineering practices and smart automation services. In addition, the company offers business, experience, technology, data, and technical advisory consulting services; and digital and service design solutions, which comprise strategy, design, creative, and program management services, as well as physical product development, such as artificial intelligence, robotics, and virtual reality. The company serves the financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, and other industries EPAM Systems, Inc. was founded in 1993 and is headquartered in Newtown, Pennsylvania.

About HashiCorp

(Get Free Report)

HashiCorp, Inc. engages in the provision of multi-cloud infrastructure automation solutions worldwide. The company offers infrastructure provisioning products, including Terraform, that enables IT operations teams to apply an Infrastructure-as-Code approach, where processes and configuration required to support applications are codified and automated instead of being manual and ticket-based; Packer, that provides a consistent way to define the process of transforming the raw source inputs into a production worthy artifact, across any environment or packaging format; and Vagrant, that allows teams to define how development environments are set up. It also provides security products, such as Vault, a secrets management and data protection product, which enables security teams to apply policies based on application and user identity to govern access to credentials and secure sensitive data; and Boundary, that applies an identity-based approach to privileged access management and unifies the controls to a single system. In addition, the company offers Consul, an application-centric networking automation product that enables practitioners to manage application traffic, security teams to secure and restrict access between applications, and operations teams to automate the underlying network infrastructure; Nomad, a scheduler and workload orchestrator, which provides practitioners with a self-service interface to manage the application lifecycle; and Waypoint, an application delivery product that provides a developer-focused workflow for the build, deploy, and release process. Further, it provides HashiCorp Cloud Platform, a fully-managed cloud platform for multiple products to accelerate enterprise cloud migration by addressing resource and skills gaps, improving operational efficiency, and speeding up deployment time for customers. The company was incorporated in 2012 and is headquartered in San Francisco, California.

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