Head to Head Analysis: EPAM Systems (EPAM) and Professional Diversity Network (IPDN)

EPAM Systems (NYSE: EPAM) and Professional Diversity Network (NASDAQ:IPDN) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

91.6% of EPAM Systems shares are held by institutional investors. Comparatively, 5.0% of Professional Diversity Network shares are held by institutional investors. 6.2% of EPAM Systems shares are held by company insiders. Comparatively, 9.2% of Professional Diversity Network shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares EPAM Systems and Professional Diversity Network’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EPAM Systems $1.45 billion 4.45 $72.76 million $2.72 44.78
Professional Diversity Network $26.23 million 0.60 -$4.10 million ($4.54) -0.88

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for EPAM Systems and Professional Diversity Network, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EPAM Systems 0 1 13 0 2.93
Professional Diversity Network 0 0 0 0 N/A

EPAM Systems presently has a consensus price target of $113.50, suggesting a potential downside of 6.81%. Given EPAM Systems’ higher probable upside, research analysts plainly believe EPAM Systems is more favorable than Professional Diversity Network.

Profitability

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

Net Margins Return on Equity Return on Assets
EPAM Systems 5.02% 16.52% 13.67%
Professional Diversity Network -86.95% -37.27% -25.12%

Risk and Volatility

EPAM Systems has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Professional Diversity Network has a beta of 2.94, suggesting that its share price is 194% more volatile than the S&P 500.

Summary

EPAM Systems beats Professional Diversity Network on 11 of the 13 factors compared between the two stocks.

About EPAM Systems

EPAM Systems, Inc. is a g provider of software product development and digital platform engineering services to clients located primarily in North America, Europe, Asia and Australia. The Company’s service offerings cover the full software product development lifecycle from digital strategy and customer experience design to enterprise application platforms implementation and program management services and from complex software development services to maintenance, support, custom application development, application testing, and infrastructure management. Its service offerings include Software Product Development Services, Custom Application Development Services, Application Testing Services, Enterprise Application Platforms, Application Maintenance and Support, and Infrastructure Management Services. It offers its solutions and services to industries, such as financial services, media and entertainment, travel and consumer, software and hi-tech, and life sciences and healthcare.

About Professional Diversity Network

Professional Diversity Network, Inc. is an operator of professional networks with a focus on diversity. The Company serves various communities, including Women, Hispanic-Americans, African-Americans, Asian-Americans, Disabled, Military Professionals, and Lesbian, Gay, Bisexual and Transgender (LGBT). The Company’s segments include Professional Diversity Network (PDN Network), which includes online professional networking communities with career resources for the needs of various diverse cultural groups; National Association of Professional Women (NAPW Network), a women-only professional networking organization, and Noble Voice operations (Noble Voice), a career consultation and lead generation service. The Noble Voice call centers qualify callers for real-time job placement. The PDN Network consists of various online professional networking communities dedicated to serving diverse professionals in the United States and employers seeking to hire diverse talent.

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