Contrasting Ntt Data (OTC:NTDTY) and Aspen Technology (NASDAQ:AZPN)

Ntt Data (OTC:NTDTY) and Aspen Technology (NASDAQ:AZPN) are both large-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Insider & Institutional Ownership

45.7% of Aspen Technology shares are owned by institutional investors. 1.0% of Aspen Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Ntt Data and Aspen Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ntt Data	3.20%	5.16%	1.97%
Aspen Technology	0.54%	3.17%	2.89%

Earnings and Valuation

This table compares Ntt Data and Aspen Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ntt Data	$30.25 billion	0.92	$923.70 million	$0.70	28.23
Aspen Technology	$1.13 billion	14.82	-$9.77 million	$0.08	3,299.16

Ntt Data has higher revenue and earnings than Aspen Technology. Ntt Data is trading at a lower price-to-earnings ratio than Aspen Technology, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ntt Data and Aspen Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ntt Data	0	0	0	1	4.00
Aspen Technology	0	5	2	0	2.29

Aspen Technology has a consensus target price of $272.00, indicating a potential upside of 3.07%. Given Aspen Technology’s higher probable upside, analysts plainly believe Aspen Technology is more favorable than Ntt Data.

Risk & Volatility

Ntt Data has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Aspen Technology has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Summary

Ntt Data beats Aspen Technology on 8 of the 15 factors compared between the two stocks.

About Ntt Data

NTT DATA Group Corporation provides IT and business services worldwide. It offers cloud, cybersecurity, data and intelligence, salesforce, SAP, ServiceNow, and application development and management, as well as 5G services. The company also provides consulting, industry solutions, business process services, and IT modernization and managed services. It serves automotive, healthcare, life sciences, media, banking, and insurance industries. The company was formerly known as NTT DATA Corporation. NTT DATA Group Corporation was founded in 1988 and is headquartered in Tokyo, Japan. NTT DATA Group Corporation operates as a subsidiary of Nippon Telegraph and Telephone Corporation.

About Aspen Technology

Aspen Technology, Inc. provides industrial software that focuses on helping customers in asset-intensive industries worldwide. The company’s solutions address complex environments where it is critical to optimize the asset design, operation, and maintenance lifecycle. Its software is used in performance engineering, modeling and design, supply chain management, predictive and prescriptive maintenance, digital grid management, and industrial data management. The company serves a range of asset-intensive industries, including oil and gas exploration and production; oil and gas processing and distribution; and oil and gas refining and marketing, as well as bulk and specialty chemicals, engineering and construction, power and utilities, metals and mining, and pharmaceuticals. Aspen Technology, Inc. was founded in 1981 and is headquartered in Bedford, Massachusetts. Aspen Technology, Inc. operates as a subsidiary of Emerson Electric Co.