Snowflake (NYSE:SNOW – Get Free Report) and EPAM Systems (NYSE:EPAM – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Risk & Volatility
Snowflake has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, EPAM Systems has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.
Earnings and Valuation
This table compares Snowflake and EPAM Systems”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Snowflake | $5.43 billion | 21.53 | -$1.33 billion | ($3.18) | -104.29 |
| EPAM Systems | $5.46 billion | 1.17 | $377.68 million | $7.38 | 16.76 |
EPAM Systems has higher revenue and earnings than Snowflake. Snowflake is trading at a lower price-to-earnings ratio than EPAM Systems, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Snowflake and EPAM Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Snowflake | -20.07% | -46.32% | -10.90% |
| EPAM Systems | 7.15% | 15.84% | 11.95% |
Institutional & Insider Ownership
65.1% of Snowflake shares are held by institutional investors. Comparatively, 91.6% of EPAM Systems shares are held by institutional investors. 4.8% of Snowflake shares are held by company insiders. Comparatively, 3.8% of EPAM Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and price targets for Snowflake and EPAM Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Snowflake | 1 | 5 | 34 | 0 | 2.83 |
| EPAM Systems | 1 | 10 | 6 | 0 | 2.29 |
Snowflake presently has a consensus target price of $414.24, indicating a potential upside of 24.91%. EPAM Systems has a consensus target price of $116.47, indicating a potential downside of 5.82%. Given Snowflake’s stronger consensus rating and higher possible upside, research analysts clearly believe Snowflake is more favorable than EPAM Systems.
Summary
EPAM Systems beats Snowflake on 9 of the 14 factors compared between the two stocks.
About Snowflake
Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products, as well as applies artificial intelligence (AI) for solving business problems. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana.
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.
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