EPAM Systems, Inc. (EPAM) vs Parsons Corporation (PSN)

EPAM Systems, Inc. and Parsons Corporation are both Information Technology Services companies. EPAM Systems, Inc. is the larger, with a market value of $5.5B against $4.5B — 1.2× the size. EPAM Systems, Inc. trades at the lower P/E: 14.6× against 29.3×. EPAM Systems, Inc. grew revenue faster over the last twelve months: 10.8% against −5.84%. EPAM Systems, Inc. has the higher net margin (7.15% vs 2.50%) and the higher return on invested capital (12.8% vs 4.90%). Across the 22 metrics below, EPAM Systems, Inc. leads on 19 and Parsons Corporation on 3.

Valuation

Metric EPAM PSN Information Technology Services median
P/E 14.61 29.29 14.63
P/S 1.01 0.73 1.13
P/B 1.61 1.68 2.10
Price to free cash flow 11.71 14.91 10.11
EV/EBITDA 7.09 12.97 8.56
EV/Sales 0.87 0.92 1.20
Earnings yield 6.85% 3.41% 4.56%
Free cash flow yield 8.54% 6.71% 4.37%

Profitability

Metric EPAM PSN Information Technology Services median
Gross margin 29.41% 21.96% 31.05%
Operating margin 10.03% 4.93% 3.30%
Net margin 7.15% 2.50% 2.09%
Free cash flow margin 8.59% 4.91% 0.00%
Return on equity 11.18% 5.86% 4.12%
Return on assets 8.65% 2.66% 0.61%
Return on invested capital 12.78% 4.90% 0.57%

Growth

Metric EPAM PSN Information Technology Services median
Revenue growth (TTM) 10.76% (5.84%) 7.12%
EPS growth (last fiscal year) (14.29%) 3.77% —
Revenue growth, 5-year CAGR 15.46% 10.18% 7.71%
Net income growth, 5-year CAGR 2.91% 19.60% 0.00%

Health

Metric EPAM PSN Information Technology Services median
Debt to equity 0.01 0.54 0.45
Current ratio 2.75 1.66 1.66
Net debt to EBITDA (1.97) 1.43 0.44

Dividend

Metric EPAM PSN Information Technology Services median
Dividend yield — — 1.21%
Payout ratio 0.00 0.00 0.00

Size

Metric EPAM PSN Information Technology Services median
Market cap 5.52b 4.53b 1.36b

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