In today’s rapidly evolving technology landscape, two companies stand out: EPAM Systems, Inc. and UiPath Inc. Both operate in the information technology sector but focus on different aspects of digital transformation. EPAM excels in software development and engineering services, while UiPath specializes in robotic process automation (RPA). This article will delve into their innovative strategies and market positions, ultimately guiding you to determine which company presents the most compelling investment opportunity.
Table of contents
Company Overview
EPAM Overview
EPAM Systems, Inc. is a leader in digital platform engineering and software development services, catering to a wide array of industries including financial services, healthcare, and technology. Established in 1993 and headquartered in Newtown, PA, the company specializes in delivering innovative engineering solutions such as custom software development, digital transformation services, and smart automation. With a market capitalization of approximately $11.3B and a robust workforce of over 61K employees, EPAM is recognized for its commitment to quality and customer satisfaction. The company’s mission revolves around enabling clients to navigate their digital journeys effectively while enhancing operational efficiencies.
UiPath Overview
UiPath Inc. provides an end-to-end robotic process automation (RPA) platform that is transforming how organizations automate workflows and increase productivity. Founded in 2005 and based in New York City, UiPath’s platform integrates artificial intelligence with user-friendly tools, enabling companies to streamline processes across various sectors, including banking and healthcare. With a market cap of about $9.9B and a team of around 3.9K employees, the company aims to democratize automation, allowing users with little to no coding experience to create automations effortlessly. Its mission is to empower organizations to optimize their operations through intelligent automation solutions.
Key similarities and differences
Both EPAM and UiPath operate within the technology sector, focusing on enhancing business efficiency through software solutions. While EPAM emphasizes comprehensive software development and engineering services across various industries, UiPath specializes in RPA, enabling organizations to automate specific tasks and workflows. Their distinct approaches highlight the diversity within the technology services landscape, catering to different needs in automation and software development.
Income Statement Comparison
The following table provides a comparative analysis of the recent income statements for EPAM Systems, Inc. and UiPath Inc., showcasing their financial performance metrics.
| Metric | EPAM Systems, Inc. | UiPath Inc. |
|---|---|---|
| Market Cap | 11.25B | 9.93B |
| Revenue | 4.73B | 1.43B |
| EBITDA | 671M | -145M |
| EBIT | 545M | -163M |
| Net Income | 455M | -74M |
| EPS | 7.93 | -0.13 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
Over the past fiscal year, EPAM Systems has shown a modest revenue increase to 4.73B, accompanied by a net income of 455M, indicating healthy margins. In contrast, UiPath has struggled, posting a revenue of 1.43B but a significant net loss of 74M, reflecting ongoing challenges in profitability. The stark difference in EBITDA and EBIT highlights EPAM’s operational efficiency, while UiPath’s negative figures suggest a need for strategic adjustments to improve margins and overall financial health.
Financial Ratios Comparison
The following table provides a comparative overview of the most recent financial ratios between EPAM Systems, Inc. and UiPath Inc.
| Metric | EPAM | UiPath |
|---|---|---|
| ROE | 12.52% | -3.99% |
| ROIC | 10.67% | -7.41% |
| P/E | 29.47 | -108.04 |
| P/B | 3.69 | 4.31 |
| Current Ratio | 2.95 | 2.93 |
| Quick Ratio | 2.95 | 2.93 |
| D/E | 0.045 | 0.042 |
| Debt-to-Assets | 3.44% | 2.72% |
| Interest Coverage | N/A | N/A |
| Asset Turnover | 0.99 | 0.50 |
| Fixed Asset Turnover | 14.07 | 14.41 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
EPAM demonstrates strong profitability with a solid ROE of 12.52% and an ROIC of 10.67%, indicating effective capital utilization. In contrast, UiPath’s negative ROE and ROIC raise concerns about financial health and operational efficiency. Both companies maintain healthy liquidity ratios, but EPAM’s superior asset turnover suggests more efficient asset management. Investors should be cautious with UiPath given its inability to generate profit, while EPAM appears to be a more stable investment option.
Dividend and Shareholder Returns
EPAM Systems, Inc. does not pay dividends, reflecting a strategy focused on reinvestment for growth rather than immediate returns to shareholders. Its strong free cash flow coverage suggests potential for future distributions. Conversely, UiPath Inc. also refrains from dividend payments due to ongoing losses and prioritization of R&D investments. Both companies engage in share buybacks, which could enhance shareholder value over time. However, the absence of dividends in both cases raises questions about sustainable long-term value creation.
Strategic Positioning
EPAM Systems (EPAM) holds a strong market share in the digital platform engineering and software development sectors, driven by diverse service offerings across various industries. Its competitive edge lies in advanced engineering services and a robust infrastructure management portfolio. Conversely, UiPath (PATH) leads in the robotic process automation space, facing moderate competitive pressure from emerging AI technologies. Both firms must navigate technological disruptions while continuing to innovate to maintain their market positions.
Stock Comparison
In this section, I will analyze the weekly stock price movements and trading dynamics for EPAM Systems, Inc. (EPAM) and UiPath Inc. (PATH) over the past year, highlighting key price movements and overall trends.
Trend Analysis
EPAM Systems, Inc. (EPAM) Over the past year, EPAM has experienced a significant decline, with a percentage change of -33.94%. This indicates a bearish trend characterized by a notable acceleration in the downward movement. The stock reached a high of 311.98 and a low of 142.38, demonstrating substantial volatility with a standard deviation of 45.25. The recent period from September 21, 2025, to December 7, 2025, shows a temporary price increase of 30.15%, with a standard deviation of 17.83, suggesting some upward momentum despite the overall negative trend.
UiPath Inc. (PATH) PATH has also faced challenges, reflecting a bearish trend with a percentage change of -15.9% over the past year. This decline has also been marked by acceleration, with notable volatility (standard deviation of 4.02). The stock’s highest price was 26.35, while the lowest was 10.04. In the recent analysis period from September 21, 2025, to December 7, 2025, PATH saw a sharp increase of 57.08%, indicating a potential recovery phase, albeit still within a bearish context. The standard deviation during this period was 1.99, indicating lower volatility compared to its overall trend.
In summary, while both stocks are currently on a bearish trajectory, recent trends may offer short-term opportunities for investors, particularly in the case of PATH. However, caution is advised as the overall market dynamics remain challenging.
Analyst Opinions
Recent analyst recommendations for EPAM Systems, Inc. (EPAM) indicate a strong buy sentiment, with an A+ rating highlighting solid performance in return on assets and equity. Analysts emphasize the company’s robust financial health and growth potential. Conversely, UiPath Inc. (PATH) holds an A- rating, with a consensus to hold, as analysts cite concerns over price-to-earnings and price-to-book ratios despite strong returns on assets. Overall, the consensus for EPAM is a buy, while PATH leans towards a hold for the current year.
Stock Grades
In the current market landscape, stock ratings provide crucial insights into how analysts perceive the potential of specific companies. Here are the latest grades for two notable stocks:
EPAM Systems, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | maintain | Outperform | 2025-11-11 |
| JP Morgan | maintain | Overweight | 2025-11-07 |
| Morgan Stanley | maintain | Equal Weight | 2025-09-09 |
| JP Morgan | maintain | Overweight | 2025-08-20 |
| Barclays | maintain | Overweight | 2025-05-12 |
| Needham | maintain | Buy | 2025-05-09 |
| Guggenheim | maintain | Buy | 2025-05-09 |
| Piper Sandler | maintain | Neutral | 2025-05-09 |
| Morgan Stanley | maintain | Equal Weight | 2025-05-09 |
| Stifel | maintain | Buy | 2025-05-02 |
UiPath Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Canaccord Genuity | maintain | Buy | 2025-12-04 |
| Mizuho | maintain | Neutral | 2025-12-04 |
| Barclays | maintain | Equal Weight | 2025-12-04 |
| BMO Capital | maintain | Market Perform | 2025-12-04 |
| Needham | maintain | Hold | 2025-12-04 |
| Wells Fargo | maintain | Equal Weight | 2025-12-04 |
| Evercore ISI Group | maintain | In Line | 2025-12-04 |
| RBC Capital | maintain | Sector Perform | 2025-12-04 |
| UBS | upgrade | Neutral | 2025-10-23 |
| BMO Capital | maintain | Market Perform | 2025-10-02 |
Overall, both EPAM and UiPath have maintained their positions with consistent ratings from reputable analysts. EPAM shows a solid outlook with several “Outperform” and “Overweight” ratings, while UiPath’s grades reflect a mix of stability and cautious optimism. Investors should consider these trends as they evaluate their portfolios.
Target Prices
Based on the most recent analyst consensus, here are the target prices for the selected companies:
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| EPAM Systems, Inc. | 185 | 175 | 180 |
| UiPath Inc. | 17 | 14 | 16 |
The overall consensus indicates that EPAM Systems, Inc. has a target price of 180, which is currently below its market price of 203.66, suggesting a potential overvaluation. Meanwhile, UiPath Inc. has a target consensus of 16, slightly below its current price of 18.65, indicating a more balanced outlook.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of EPAM Systems, Inc. and UiPath Inc., providing a comparative overview of their performance metrics.
| Criterion | EPAM Systems, Inc. | UiPath Inc. |
|---|---|---|
| Diversification | Strong, with a wide range of services across multiple industries | Limited, mainly focused on RPA solutions |
| Profitability | Moderate, net profit margin of 9.6% | Negative, with a net profit margin of -5.2% |
| Innovation | High, consistent investment in technology advancements | Moderate, heavily reliant on RPA advancements |
| Global presence | Extensive, operating in multiple countries | Moderate, primarily focused on the US and select markets |
| Market Share | Significant in IT services | Growing, but still in early stages of RPA adoption |
| Debt level | Low, with a debt-to-equity ratio of 0.045 | Very low, with a debt-to-equity ratio of 0.042 |
Key takeaways indicate that while EPAM Systems showcases strong profitability and innovation across various industries, UiPath is still navigating through challenges in profitability but has substantial growth potential in the RPA market.
Risk Analysis
In the table below, I’ve outlined key risks associated with two technology companies, EPAM Systems, Inc. (EPAM) and UiPath Inc. (PATH), to help investors evaluate potential challenges.
| Metric | EPAM Systems, Inc. | UiPath Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Low |
Both companies face significant market risks due to fluctuating demand for technology services. UiPath, in particular, is at a higher risk operationally, as its automation solutions are subject to rapid technological advancements and competitive pressures.
Which one to choose?
In comparing EPAM Systems, Inc. (EPAM) and UiPath Inc. (PATH), EPAM shows stronger fundamentals with a market cap of approximately $13.4B and a robust net profit margin of 9.6%. PATH, on the other hand, is struggling with negative earnings, reflected in its significant operating losses. While EPAM has a solid “A+” rating and an overall score of 4, PATH holds an “A-” rating with a score of 4, indicating a less favorable outlook.
Both companies face risks, but EPAM’s solid fundamentals and positive cash flow yield make it appear more attractive for long-term investors. Investors focused on growth may prefer PATH due to its recent stock price increase of 57.08%, while those prioritizing stability would likely favor EPAM.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of EPAM Systems, Inc. and UiPath Inc. to enhance your investment decisions:
