Contrasting Ability (OTCMKTS:ABILF) & EPAM Systems (NYSE:EPAM)

Ability (OTCMKTS:ABILF) and EPAM Systems (NYSE:EPAM) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for Ability and EPAM Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ability	0	0	0	0	0.00
EPAM Systems	1	6	7	0	2.43

EPAM Systems has a consensus target price of $155.50, indicating a potential upside of 51.34%. Given EPAM Systems’ stronger consensus rating and higher possible upside, analysts clearly believe EPAM Systems is more favorable than Ability.

Valuation & Earnings

This table compares Ability and EPAM Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ability	N/A	N/A	N/A	N/A	N/A
EPAM Systems	$5.56 billion	0.97	$377.68 million	$6.97	14.74

EPAM Systems has higher revenue and earnings than Ability.

Volatility and Risk

Ability has a beta of -443.76, suggesting that its stock price is 44,476% less volatile than the S&P 500. Comparatively, EPAM Systems has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ability	N/A	N/A	N/A
EPAM Systems	6.96%	14.71%	11.14%

Insider & Institutional Ownership

91.6% of EPAM Systems shares are owned by institutional investors. 40.0% of Ability shares are owned by insiders. Comparatively, 3.8% of EPAM Systems shares are owned 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

EPAM Systems beats Ability on 9 of the 10 factors compared between the two stocks.

About Ability

Ability Inc. provides systems for off-air cellular and satellite interception, and geolocation worldwide. The company engages in the interception of cellular and satellite communication networks for surveillance, border security, anti-terror, anti-crime, intelligence gathering, reconnaissance, target tracking, airport security, and tracking suspicious people for use by the ministries of defense, national agencies, secret services and security officers, federal police forces and presidential police, homeland security organizations, border control forces, integrators, anti-drug organizations and law enforcement units, and ministries of interior and justice, as well as armies, navies, and air forces. It also provides tactical and strategic interception systems for Thuraya, Iridium, and IsatPhone Pro that intercepts voice calls, SMS, data traffic, call related information, and detecting location of satellite phones; and systems to intercept VSAT, DCME, and other satellite links. In addition, the company offers cellular interception systems, which include Unlimited Interceptor, a geolocation system that detects the location of phones participating in intercepted conversations; GoDown, a system in cellular phones to change operational mode and operates as a selective jammer for prison-related projects; and In-Between Interception System that supports GSM, UMTS, and LTE networks. Further, it provides various IMSI catcher configurations and CDMA interception systems. The company was founded in 1994 and is based in Tel Aviv-Yafo, Israel.

About EPAM Systems

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.