Head to Head Comparison: Aspen Technology (AZPN) vs. Sogou (SOGO)

Aspen Technology (NASDAQ: AZPN) and Sogou (NYSE:SOGO) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Earnings & Valuation

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This table compares Aspen Technology and Sogou’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aspen Technology $482.94 million 12.35 $162.19 million $2.11 39.29
Sogou $908.36 million 3.78 $82.20 million $0.29 29.83

Aspen Technology has higher earnings, but lower revenue than Sogou. Sogou 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 Recommendations

This is a breakdown of current recommendations and price targets for Aspen Technology and Sogou, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aspen Technology 2 3 3 0 2.13
Sogou 0 1 2 0 2.67

Aspen Technology currently has a consensus price target of $75.00, indicating a potential downside of 9.54%. Sogou has a consensus price target of $13.77, indicating a potential upside of 59.15%. Given Sogou’s stronger consensus rating and higher possible upside, analysts clearly believe Sogou is more favorable than Aspen Technology.

Profitability

This table compares Aspen Technology and Sogou’s 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%
Sogou N/A N/A N/A

Institutional and Insider Ownership

8.0% of Sogou shares are owned by institutional investors. 0.6% of Aspen Technology 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.

Summary

Aspen Technology beats Sogou on 8 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 Sogou

Sogou Inc. provides search and search-related services in the People's Republic of China. The company provides Sogou Search, a search engine; and Sogou Input Method, a Chinese language input software for mobile and PC MAUs. It also offers search and search-related advertising services; Internet value-added services related to the operation of Web games and mobile games developed by third parties; and online reading services, as well as other products and services, including smart hardware products. The company was incorporated in 2005 and is based in Beijing, the People's Republic of China. Sogou Inc. is a subsidiary of Sohu.com Inc.

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