Aspen Technology (NASDAQ:AZPN – Get Free Report) and Thoughtworks (NASDAQ:TWKS – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.
Insider and Institutional Ownership
43.9% of Aspen Technology shares are held by institutional investors. Comparatively, 27.0% of Thoughtworks shares are held by institutional investors. 1.0% of Aspen Technology shares are held by insiders. Comparatively, 3.9% of Thoughtworks shares are held by 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.
Volatility & Risk
Aspen Technology has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Thoughtworks has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aspen Technology | 0 | 6 | 0 | 0 | 2.00 |
| Thoughtworks | 0 | 5 | 1 | 0 | 2.17 |
Aspen Technology presently has a consensus target price of $198.80, suggesting a potential upside of 5.38%. Thoughtworks has a consensus target price of $8.44, suggesting a potential upside of 71.29%. Given Thoughtworks’ stronger consensus rating and higher probable upside, analysts plainly believe Thoughtworks is more favorable than Aspen Technology.
Valuation and Earnings
This table compares Aspen Technology and Thoughtworks’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aspen Technology | $1.04 billion | 11.63 | -$107.76 million | ($1.66) | -113.64 |
| Thoughtworks | $1.30 billion | 1.21 | -$105.39 million | ($0.12) | -41.08 |
Thoughtworks has higher revenue and earnings than Aspen Technology. Aspen Technology is trading at a lower price-to-earnings ratio than Thoughtworks, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Aspen Technology and Thoughtworks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aspen Technology | -10.32% | 2.32% | 2.07% |
| Thoughtworks | -2.88% | -1.42% | -0.79% |
Summary
Thoughtworks beats Aspen Technology on 9 of the 14 factors compared between the two stocks.
About Aspen Technology
Aspen Technology, Inc. provides enterprise asset performance management, asset performance monitoring, and asset optimization solutions worldwide. The company's solutions address complex environments where it is critical to optimize the asset design, operation, and maintenance lifecycle. It offers artificial intelligence of things, aspen hybrid models, asset performance management, OSI digital grid management, and performance engineering; production optimization for commodity polymers, olefins, refining, and specialty chemicals; subsurface science and engineering; and value chain optimization for energy and polymers and specialty chemicals solutions. The company serves bulk chemicals, consumer packaged goods, downstream, food and beverage, metals and mining, midstream and LNG, pharmaceuticals, polymers, pulp and paper, specialty chemicals, transportation, upstream, and water and wastewater industries; power generation, transmission, and distribution industries; and engineering, procurement, and construction industries. Aspen Technology, Inc. was incorporated in 2021 and is headquartered in Bedford, Massachusetts.
About Thoughtworks
Thoughtworks Holding, Inc. provides technology consultancy services in North America, the Asia Pacific, Europe, and Latin America. The company's consultancy services integrate strategy, design, and software engineering to enable enterprises and technology disruptors to thrive as modern digital businesses. It offers enterprise modernization, platforms, and cloud services, including modernization strategy and execution, digital platform strategy and engineering organization transformation, cloud modernization, cloud-native application support and evolution, and platform assessment and remediation; and customer experience, product, and design services comprising idea to market, customer experience strategy, product management transformation, and product design and delivery. The company also provides data and artificial intelligence services, such as data strategy, intelligent products, data platforms and data mesh, continuous delivery for machine learning, and data governance; and digital transformation and operations services, which include delivery transformation, digital fluency, organization transformation, value-driven portfolio management, technology strategy, executive advisory, and digital foundations training. It serves its clients in various industry verticals, including technology and business services; energy, public, and health services; retail and consumer; financial services and insurance; and automotive, travel, and transportation. The company was founded in 1993 and is headquartered in Chicago, Illinois.
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