Comparing Snowflake (NYSE:SNOW) & EPAM Systems (NYSE:EPAM)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snowflake	$4.68 billion	25.42	-$1.33 billion	($3.18)	-106.14
EPAM Systems	$5.46 billion	1.07	$377.68 million	$7.38	15.29

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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Snowflake and EPAM Systems, as provided by MarketBeat.com.

	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 currently has a consensus price target of $414.24, indicating a potential upside of 22.73%. EPAM Systems has a consensus price target of $116.47, indicating a potential upside of 3.20%. Given Snowflake’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Snowflake is more favorable than EPAM Systems.

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%

Insider and Institutional Ownership

65.1% of Snowflake shares are owned by institutional investors. Comparatively, 91.6% of EPAM Systems shares are owned by institutional investors. 4.8% of Snowflake shares are owned by insiders. Comparatively, 3.8% of EPAM Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Snowflake has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, EPAM Systems has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.

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.