Financial Survey: Taboola.com (NASDAQ:TBLA) & EPAM Systems (NYSE:EPAM)

EPAM Systems (NYSE:EPAM) and Taboola.com (NASDAQ:TBLA) 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, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Volatility and Risk

EPAM Systems has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPAM Systems	$4.73 billion	2.47	$454.53 million	$6.55	32.33
Taboola.com	$1.77 billion	0.70	-$3.76 million	$0.08	53.25

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EPAM Systems	7.01%	13.16%	10.15%
Taboola.com	1.34%	8.12%	4.92%

Institutional & Insider Ownership

91.6% of EPAM Systems shares are held by institutional investors. Comparatively, 42.9% of Taboola.com shares are held by institutional investors. 4.3% of EPAM Systems shares are held by company insiders. Comparatively, 24.7% of Taboola.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for EPAM Systems and Taboola.com, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPAM Systems	0	6	11	2	2.79
Taboola.com	0	4	5	0	2.56

EPAM Systems presently has a consensus price target of $211.50, suggesting a potential downside of 0.14%. Taboola.com has a consensus price target of $4.80, suggesting a potential upside of 12.68%. Given Taboola.com’s higher probable upside, analysts plainly believe Taboola.com is more favorable than EPAM Systems.

Summary

EPAM Systems beats Taboola.com on 12 of the 15 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 Taboola.com

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.