Critical Comparison: Earlyworks (NASDAQ:ELWS) and Aspen Technology (NASDAQ:AZPN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aspen Technology	0.54%	3.17%	2.89%
Earlyworks	N/A	N/A	N/A

Earnings & Valuation

This table compares Aspen Technology and Earlyworks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aspen Technology	$1.14 billion	14.67	-$9.77 million	$0.08	3,304.13
Earlyworks	$349.39 million	0.02	-$2.13 million	N/A	N/A

Earlyworks has lower revenue, but higher earnings than Aspen Technology.

Volatility & Risk

Aspen Technology has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Earlyworks has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Insider and Institutional Ownership

45.7% of Aspen Technology shares are owned by institutional investors. Comparatively, 0.5% of Earlyworks shares are owned by institutional investors. 1.0% of Aspen Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Aspen Technology and Earlyworks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aspen Technology	0	5	2	0	2.29
Earlyworks	0	0	0	0	0.00

Aspen Technology currently has a consensus target price of $272.00, suggesting a potential upside of 2.90%. Given Aspen Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Aspen Technology is more favorable than Earlyworks.

Summary

Aspen Technology beats Earlyworks on 10 of the 12 factors compared between the two stocks.

About Aspen Technology

Aspen Technology, Inc. provides industrial software that focuses on helping customers in asset-intensive industries worldwide. The company’s solutions address complex environments where it is critical to optimize the asset design, operation, and maintenance lifecycle. Its software is used in performance engineering, modeling and design, supply chain management, predictive and prescriptive maintenance, digital grid management, and industrial data management. The company serves a range of asset-intensive industries, including oil and gas exploration and production; oil and gas processing and distribution; and oil and gas refining and marketing, as well as bulk and specialty chemicals, engineering and construction, power and utilities, metals and mining, and pharmaceuticals. Aspen Technology, Inc. was founded in 1981 and is headquartered in Bedford, Massachusetts. Aspen Technology, Inc. operates as a subsidiary of Emerson Electric Co.

About Earlyworks

Earlyworks Co., Ltd operates as a blockchain-based technology company in Japan. The company builds products, deliver services, and develop solutions based on its proprietary Grid Ledger System to leverage blockchain technology in various business settings, including advertisement tracking, online visitor management, and sales of non-fungible tokens. It also provides software and system development services; consulting and solution services; blockchain system solution planning; and proposal, design, and development planning services. The company serves the information technology, shipping, real estate, entertainment, cosmetics, and chemical products sectors. Earlyworks Co., Ltd was incorporated in 2018 and is based in Tokyo, Japan.