Head to Head Comparison: Clarivate (NYSE:CLVT) vs. EPAM Systems (NYSE:EPAM)

Clarivate (NYSE:CLVT) and EPAM Systems (NYSE:EPAM) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Earnings and Valuation

This table compares Clarivate and EPAM Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clarivate	$2.56 billion	1.02	-$636.70 million	($0.62)	-6.27
EPAM Systems	$4.73 billion	1.82	$454.53 million	$7.01	21.99

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

Risk and Volatility

Clarivate has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, EPAM Systems has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Clarivate and EPAM Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clarivate	2	4	0	0	1.67
EPAM Systems	1	4	13	0	2.67

Clarivate currently has a consensus target price of $4.83, suggesting a potential upside of 24.41%. EPAM Systems has a consensus target price of $224.06, suggesting a potential upside of 45.37%. Given EPAM Systems’ stronger consensus rating and higher possible upside, analysts plainly believe EPAM Systems is more favorable than Clarivate.

Profitability

This table compares Clarivate and EPAM Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clarivate	-17.33%	8.65%	3.85%
EPAM Systems	7.91%	14.00%	10.89%

Insider and Institutional Ownership

85.7% of Clarivate shares are owned by institutional investors. Comparatively, 91.6% of EPAM Systems shares are owned by institutional investors. 23.2% of Clarivate shares are owned by company insiders. Comparatively, 4.3% of EPAM Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

EPAM Systems beats Clarivate on 13 of the 14 factors compared between the two stocks.

About Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.

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.