Comparing CoreWeave (NASDAQ:CRWV) and EPAM Systems (NYSE:EPAM)

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

Risk & Volatility

CoreWeave has a beta of 7.45, suggesting that its stock price is 645% more volatile than the S&P 500. Comparatively, EPAM Systems has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CoreWeave	-25.41%	-47.95%	-3.79%
EPAM Systems	7.15%	15.84%	11.95%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreWeave	3	10	21	0	2.53
EPAM Systems	1	10	6	0	2.29

CoreWeave presently has a consensus target price of $142.31, indicating a potential upside of 71.50%. EPAM Systems has a consensus target price of $116.47, indicating a potential downside of 5.82%. Given CoreWeave’s stronger consensus rating and higher possible upside, equities research analysts clearly believe CoreWeave is more favorable than EPAM Systems.

Valuation & Earnings

This table compares CoreWeave and EPAM Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoreWeave	$5.13 billion	7.42	-$1.17 billion	($3.65)	-22.73
EPAM Systems	$5.46 billion	1.17	$377.68 million	$7.38	16.76

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

Institutional and Insider Ownership

91.6% of EPAM Systems shares are held by institutional investors. 24.2% of CoreWeave 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 company is poised for long-term growth.

Summary

EPAM Systems beats CoreWeave on 8 of the 14 factors compared between the two stocks.

About CoreWeave

CoreWeave, Inc. engages in the powers of the creation and delivery of the intelligence that drives innovation. It offers a solution used by organizations of all sizes that require sophisticated AI computing, from the largest of enterprises to small, well-funded start-ups. The company was founded by Michael Intrator, Brian Venturo, and Brannin McBee on September 21, 2017 and is headquartered in Livingston, NJ.

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.