MicroAlgo (NASDAQ:MLGO – Get Rating) and EPAM Systems (NYSE:EPAM – Get Rating) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Profitability
This table compares MicroAlgo and EPAM Systems’ net margins, return on equity and return on assets.
Get MicroAlgo alerts:
Net Margins | Return on Equity | Return on Assets | |
MicroAlgo | N/A | -2.37% | 0.14% |
EPAM Systems | 8.69% | 21.55% | 15.91% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for MicroAlgo and EPAM Systems, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
MicroAlgo | 0 | 0 | 0 | 0 | N/A |
EPAM Systems | 0 | 3 | 11 | 0 | 2.79 |
EPAM Systems has a consensus price target of $402.33, suggesting a potential upside of 18.96%. Given EPAM Systems’ higher probable upside, analysts clearly believe EPAM Systems is more favorable than MicroAlgo.
Earnings & Valuation
This table compares MicroAlgo and EPAM Systems’ top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
MicroAlgo | N/A | N/A | -$810,000.00 | N/A | N/A |
EPAM Systems | $4.82 billion | 4.03 | $419.42 million | $7.08 | 47.77 |
EPAM Systems has higher revenue and earnings than MicroAlgo.
Insider & Institutional Ownership
67.0% of MicroAlgo shares are owned by institutional investors. Comparatively, 92.3% of EPAM Systems shares are owned by institutional investors. 22.7% of MicroAlgo shares are owned by insiders. Comparatively, 4.1% of EPAM Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
MicroAlgo has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, EPAM Systems has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.
Summary
EPAM Systems beats MicroAlgo on 9 of the 10 factors compared between the two stocks.
About MicroAlgo
MicroAlgo Inc. develops and delivers central processing algorithm solutions to customers in internet advertisement, gaming, and intelligent chip industries in the People's Republic of China and internationally. The company operates through two segments, Central Processing Algorithm Services, and Intelligent Chips and Services. It offers services that includes algorithm optimization, accelerating computing power without the need for hardware upgrades, data processing, and data intelligence services. The company also engages in the resale of intelligent chips and accessories; and provision of software development. MicroAlgo Inc. is based in Shenzhen, the People's Republic of China. MicroAlgo Inc. is a subsidiary of WiMi Hologram Cloud Inc.
About EPAM Systems
EPAM Systems, Inc. engages in the provision of software product development and digital platform engineering services. It operates through the following geographical segments: North America, Europe, and Russia. The company was founded by Leonid Lozner and Arkadiy Dobkin in 1993 and is headquartered in Newtown, PA.