Comparing Presidio (PSDO) and ePlus (PLUS)

Presidio (NASDAQ: PSDO) and ePlus (NASDAQ:PLUS) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

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This table compares Presidio and ePlus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Presidio 4.11% 9.62% 2.34%
ePlus 4.01% 15.06% 7.34%

Valuation and Earnings

This table compares Presidio and ePlus’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Presidio $2.82 billion 0.51 $4.40 million $0.05 311.00
ePlus $1.33 billion 0.80 $50.55 million $3.74 20.36

ePlus has lower revenue, but higher earnings than Presidio. ePlus is trading at a lower price-to-earnings ratio than Presidio, 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 Presidio and ePlus, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Presidio 0 1 4 0 2.80
ePlus 0 1 1 0 2.50

Presidio currently has a consensus target price of $18.80, indicating a potential upside of 20.90%. ePlus has a consensus target price of $75.00, indicating a potential downside of 1.51%. Given Presidio’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Presidio is more favorable than ePlus.

Institutional and Insider Ownership

97.0% of Presidio shares are owned by institutional investors. Comparatively, 91.3% of ePlus shares are owned by institutional investors. 2.7% of Presidio shares are owned by insiders. Comparatively, 3.3% of ePlus 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.

Summary

Presidio beats ePlus on 7 of the 13 factors compared between the two stocks.

Presidio Company Profile

Presidio, Inc. is a United States-based company, which is an information technology (IT) solutions provider. The Company’s services include strategy and consulting, solutions design and deployment, managed services, asset maintenance and support, financing services, global services and carrier connectivity. It offers various solutions under categories, including Digital Infrastructure, including Networking, Collaboration, Enterprise Mobility, Internet of Things and Data Analytics; Cloud, including Data Center Modernization, Hybrid/Multi Cloud and Cloud Concierge; and Security, including Next Generation Risk Management, Infrastructure Security, Managed Security and Physical Security. The Company focuses on technologies, including Collaboration, Virtualization, Data Center, Mobility, Hybrid Cloud Computing, IT Convergence and Cyber Security. It focuses on industries, such as healthcare, education, media and entertainment, energy and utilities, and legal and professional services.

ePlus Company Profile

ePlus inc., an engineering-centric technology solutions provider, provides information technology (IT) products and services, flexible leasing and financing solutions, and enterprise supply management in the United States. It operates through two segments, Technology and Financing. The Technology segment sells IT products, such as hardware, software, maintenance, software assurance, and services; and offers advanced professional and managed services, including data center infrastructure, networking, security, cloud, and collaboration, as well as ePlus managed, professional, security, staff augmentation, server and desktop support, and project management services. This segment also offers proprietary software products comprising OneSource IT, an online Web based software portal for customers purchasing IT equipment, software, and services; OneSource Procurement, a Web-based software tool to facilitate procurement of various assets; OneSource Asset Management, a software platform for managing and tracking corporate assets consisting of vendor maintenance contracts; and OneSource DigitalPaper, a document management software application. The Financing segment specializes in financing arrangements, including direct financing, sales-type and operating leases, notes receivable, and consumption based financing arrangements, as well as underwriting and management of IT equipment and assets. Its financing operations comprise sales, pricing, credit, contracts, accounting, and risk and asset management. This segment primarily finances IT equipment, such as accessories and software, communication-related equipment, and medical equipment. The company serves commercial entities, state and local governments, government contractors, and educational institutions. The company was formerly known as MLC Holdings, Inc. and changed its name to ePlus inc. in 1999. ePlus inc. was founded in 1990 and is headquartered in Herndon, Virginia.

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