Contrasting NCI (NCIT) and Aspen Technology (AZPN)

NCI (NASDAQ: NCIT) and Aspen Technology (NASDAQ:AZPN) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Valuation and Earnings

This table compares NCI and Aspen Technology’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NCI N/A N/A N/A $0.42 47.62
Aspen Technology $482.94 million 11.71 $162.19 million $2.19 35.89

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

Analyst Ratings

This is a breakdown of current ratings for NCI and Aspen Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NCI 0 3 1 0 2.25
Aspen Technology 2 4 2 0 2.00

NCI currently has a consensus price target of $18.33, indicating a potential downside of 8.33%. Aspen Technology has a consensus price target of $71.63, indicating a potential downside of 8.86%. Given NCI’s stronger consensus rating and higher probable upside, analysts clearly believe NCI is more favorable than Aspen Technology.

Institutional and Insider Ownership

38.6% of NCI shares are owned by institutional investors. 45.4% of NCI shares are owned by insiders. Comparatively, 0.8% of Aspen Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
NCI 2.53% 8.07% 5.69%
Aspen Technology 33.23% -61.97% 73.23%

Volatility and Risk

NCI has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Aspen Technology has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

NCI Company Profile

NCI, Inc. is a provider of enterprise services and solutions to defense, intelligence, healthcare and civilian government agencies. The Company provides information technology (IT), and professional services and solutions by leveraging its core service offerings, which include cloud computing and IT infrastructure optimization; cybersecurity and information assurance; engineering and logistics support; enterprise information management and advanced analytics; health IT and medical support; IT service management; modeling, simulation, and training, and agile development and integration. The Company helps its clients to navigate the range of cloud, Everything-as-a-Service (EaaS), capacity services and virtualization options available. The Company provides its customers the full lifecycle of cybersecurity services, including policy and planning, compliance, identity and access management, training, education, awareness and enterprise security operations.

Aspen Technology Company Profile

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.

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