Aspen Technology (AZPN) versus Insight Enterprises (NSIT) Financial Survey

Aspen Technology (NASDAQ: AZPN) and Insight Enterprises (NASDAQ:NSIT) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Volatility and Risk

Aspen Technology has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Insight Enterprises has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Earnings and Valuation

This table compares Aspen Technology and Insight Enterprises’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aspen Technology $482.94 million 11.13 $162.19 million $2.19 34.12
Insight Enterprises $5.49 billion 0.22 $84.68 million $2.70 12.69

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

Insider and Institutional Ownership

96.0% of Insight Enterprises shares are owned by institutional investors. 0.8% of Aspen Technology shares are owned by insiders. Comparatively, 1.4% of Insight Enterprises shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Aspen Technology and Insight Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aspen Technology 33.23% -61.97% 73.23%
Insight Enterprises 1.53% 14.90% 4.51%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Aspen Technology and Insight Enterprises, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aspen Technology 2 4 2 0 2.00
Insight Enterprises 1 1 1 0 2.00

Aspen Technology presently has a consensus price target of $71.63, suggesting a potential downside of 4.15%. Insight Enterprises has a consensus price target of $50.50, suggesting a potential upside of 47.45%. Given Insight Enterprises’ higher possible upside, analysts clearly believe Insight Enterprises is more favorable than Aspen Technology.

Summary

Insight Enterprises beats Aspen Technology on 7 of the 13 factors compared between the two stocks.

About Aspen Technology

Aspen Technology, Inc. is a global provider of process optimization software solutions designed to manage and optimize plant and process design, operational performance, and supply chain planning. The Company’s aspenONE software and related services have been developed specifically for companies in the process industries, including the energy, chemicals, and engineering and construction industries. It operates through two segments, including subscription and software, which provides licensing of process optimization software solutions and associated support services, and services, which includes professional services and training. It has developed applications to design and optimize processes across the business areas, including engineering, manufacturing and supply chain. Its products include Aspen HYSYS, Aspen Economic Evaluation, Aspen Info Plus.21, Aspen PIMS Advanced Optimization, Aspen Collaborative Demand Manager and Aspen Supply Planner.

About Insight Enterprises

Insight Enterprises, Inc. is engaged in providing information technology (IT) hardware, software, and cloud and service solutions to business, government, healthcare and educational clients. The Company operates through three segments: North America, EMEA and APAC. North America comprises the United States and Canada; EMEA comprises Europe, the Middle East and Africa, and APAC comprises Asia Pacific. The Company consults, designs, implements and manages integrated IT solutions for its customers. Its offerings in North America and select countries in Europe, the Middle East and Africa include a suite of IT hardware, software and services solutions. Its offerings in the remainder of EMEA and APAC segments are software and select software-related services. Its cloud management platform serves as a marketplace for its clients to buy and manage their cloud subscriptions with options that manage their software-as-a-service and infrastructure-as-a-service management capabilities.

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