EPAM Systems (NYSE:EPAM) versus Fujitsu (OTCMKTS:FJTSY) Critical Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EPAM Systems	6.92%	13.57%	10.41%
Fujitsu	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for EPAM Systems and Fujitsu, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPAM Systems	0	7	11	0	2.61
Fujitsu	0	1	0	0	2.00

EPAM Systems presently has a consensus target price of $197.81, suggesting a potential upside of 49.90%. Given EPAM Systems’ stronger consensus rating and higher probable upside, equities analysts clearly believe EPAM Systems is more favorable than Fujitsu.

Risk & Volatility

EPAM Systems has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Fujitsu has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Insider and Institutional Ownership

91.6% of EPAM Systems shares are owned by institutional investors. Comparatively, 0.1% of Fujitsu shares are owned by institutional investors. 4.3% of EPAM Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares EPAM Systems and Fujitsu”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	$5.46 billion	1.34	$377.68 million	$6.73	19.61
Fujitsu	$23.31 billion	N/A	$1.45 billion	$0.45	51.56

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

Summary

EPAM Systems beats Fujitsu on 10 of the 13 factors compared between the two stocks.

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.

About Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.