Facebook (NASDAQ:FB) and Edgewater Technology (NASDAQ:EDGW) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Facebook and Edgewater Technology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Facebook 3 7 37 2.72
Edgewater Technology N/A

Facebook presently has a consensus target price of $187.14, indicating a potential upside of 24.73%. Given Facebook’s higher probable upside, equities research analysts clearly believe Facebook is more favorable than Edgewater Technology.

Earnings and Valuation

This table compares Facebook and Edgewater Technology’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Facebook $40.65 billion 10.72 $15.93 billion $6.16 24.36
Edgewater Technology N/A N/A N/A N/A N/A

Facebook has higher revenue and earnings than Edgewater Technology.

Insider & Institutional Ownership

58.2% of Facebook shares are owned by institutional investors. Comparatively, 70.3% of Edgewater Technology shares are owned by institutional investors. 16.3% of Facebook shares are owned by insiders. Comparatively, 7.6% of Edgewater Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Facebook and Edgewater Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Facebook 37.57% 27.89% 24.41%
Edgewater Technology N/A N/A N/A

Summary

Facebook beats Edgewater Technology on 7 of the 8 factors compared between the two stocks.

About Facebook

Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its products include Facebook Website and mobile application that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing visual stories through photos, videos, and direct messages; Messenger, a messaging application to communicate with other people, groups, and businesses across various platforms and devices; and WhatsApp, a mobile messaging application. The company also offers Oculus virtual reality technology and content platform, which allows people to enter an immersive and an interactive environment to train, learn, play games, consume content, and connect with others. As of December 31, 2017, it had approximately 1.40 billion daily active users. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.

About Edgewater Technology

Edgewater Technology, Inc. provides business and technology services, and channel-based solutions in the United States, Canada, and internationally. It offers digital transformation; CFO/CIO advisory; business improvement roadmaps; organizational change management; program/project management; business process rejuvenation and integrated social media practices; specialized operational, due diligence, and technology management services to mergers and acquisitions, private equity, and venture capital; and strategic advice, costing, estimates to complete, and failing or failed programs or project initiatives. The company also provides independent package selection and request for information or proposal process design and implementation; domain; technical architecture, roadmaps, and design; strategic technology selections; data analytics and reporting; custom component design and implementation; customer intelligence solutions using Web/mobile analytics; cloud architecture, integration, and phasing solutions; on-going support; and infrastructure optimization and redesign, disaster recovery, and business continuity specialized design and assistance services. In addition, it offers product-based consulting services, such as business transformation through packaged software solutions; enterprise performance management with Oracle budgeting, planning, consolidation, and strategic finance; big data; enterprise resource planning with Microsoft Dynamics AX in process and discrete manufacturing verticals; customer relationship management with Microsoft Dynamics CRM; industry specific platform and solutions; Microsoft CRM/XRM and specialized custom, as well as blended solutions; business intelligence analytics; design, development, and introduction of IP; and support and training services. Further, the company provides enterprise information management and analytics services. Edgewater Technology, Inc. was founded in 1992 and is headquartered in Wakefield, Massachusetts.

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