Luxoft Holding Inc. (LXFT)’s Financial Results Comparing With ANSYS Inc. (NASDAQ:ANSS)

As Application Software businesses, Luxoft Holding Inc. (NYSE:LXFT) and ANSYS Inc. (NASDAQ:ANSS), are affected by contrast. This especially applies to their profitability, analyst recommendations, risk, dividends, institutional ownership, earnings and valuation.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Luxoft Holding Inc. 904.44M 2.20 41.58M 1.23 47.75
ANSYS Inc. 1.29B 12.12 419.38M 3.90 46.25

In table 1 we can see Luxoft Holding Inc. and ANSYS Inc.’s top-line revenue, earnings per share and valuation. ANSYS Inc. has higher revenue and earnings than Luxoft Holding Inc. The business with a higher P/E ratio is currently more expensive of the two stocks. Luxoft Holding Inc.’s shares have been trading at higher P/E ratio which means it is currently more expensive than ANSYS Inc.

Profitability

Table 2 represents Luxoft Holding Inc. (NYSE:LXFT) and ANSYS Inc. (NASDAQ:ANSS)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luxoft Holding Inc. 4.60% 8.6% 6.8%
ANSYS Inc. 32.51% 12.5% 10.1%

Risk and Volatility

Luxoft Holding Inc.’s current beta is 2.44 and it happens to be 144.00% more volatile than S&P 500. Competitively, ANSYS Inc.’s 35.00% volatility makes it more volatile than S&P 500, because of the 1.35 beta.

Liquidity

The Current Ratio of Luxoft Holding Inc. is 3.8 while its Quick Ratio stands at 3.7. The Current Ratio of rival ANSYS Inc. is 2.7 and its Quick Ratio is has 2.7. Luxoft Holding Inc. is better equipped to clear short and long-term obligations than ANSYS Inc.

Analyst Recommendations

The next table highlights the given recommendations and ratings for Luxoft Holding Inc. and ANSYS Inc.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Luxoft Holding Inc. 0 2 2 2.50
ANSYS Inc. 0 1 5 2.83

Luxoft Holding Inc. has a consensus target price of $53.67, and a -8.66% downside potential. Meanwhile, ANSYS Inc.’s average target price is $195.17, while its potential upside is 4.44%. Based on the analysts belief we can conclude, ANSYS Inc. is looking more favorable than Luxoft Holding Inc.

Institutional & Insider Ownership

The shares of both Luxoft Holding Inc. and ANSYS Inc. are owned by institutional investors at 99.9% and 99.1% respectively. Insiders owned roughly 5.33% of Luxoft Holding Inc.’s shares. On the other hand, insiders owned about 0.9% of ANSYS Inc.’s shares.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Luxoft Holding Inc. 0.29% 0.79% 78.7% 25.92% 37.14% 92.27%
ANSYS Inc. 2.93% 9.6% 12.24% -2.96% 13.47% 26.02%

For the past year Luxoft Holding Inc. has stronger performance than ANSYS Inc.

Summary

ANSYS Inc. beats Luxoft Holding Inc. on 12 of the 15 factors.

Luxoft Holding, Inc., together with its subsidiaries, provides software development services and IT solutions to multinational corporations primarily in Europe and the United States. It offers application software development, software architecture design, performance engineering, optimization and testing, process consulting, and software quality assurance services; functional specification and mock-up, product design, engineering, automated testing, maintenance, support, and performance engineering services; and IT strategy, software engineering process, and data security consulting services. The companyÂ’s products and platforms include Teora, a suite of developer tools designed to enable automotive human machine interface (HMI) developers build the logic of their user interface; Populus, a tool chain for HMI design and development, and the deployment of automotive user interfaces for distributed embedded systems; and AllView, a user-experience demonstrator that links instrument cluster, head unit, head-up display, and mobile devices. It serves financial services, automotive and transport, travel and aviation, technology, telecom, healthcare and pharmaceutical, energy, and other industries. The company was founded in 2000 and is headquartered in Zug, Switzerland.

ANSYS, Inc. develops and markets engineering simulation software and services used by engineers, designers, researchers, and students in the aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors industries and academia worldwide. The company offers ANSYS Workbench, a framework upon which the companyÂ’s engineering simulation technologies are built; ANSYS Engineering Knowledge Manager, a solution for simulation-based process and data management challenges; and high-performance computing product suite that delivers cross-physics parallel processing capabilities for simulation software. It also offers geometry handling solutions; meshing technology that transforms a physical model into a mathematical model; structural analysis product suite for product design and optimization; explicit dynamics product suite that simulates events; and composite analysis and optimization technology, as well as customization services. In addition, the company provides fluids product suite that enables modeling of fluid flow and other related physical phenomena; electronics product suite that provides field simulation software for designing electronic and electromechanical products; and power analysis and optimization software suite. Further, it offers system simulation capability, a collaborative environment; ANSYS multiphysics software that enables to simulate interactions between structures, heat transfer, fluids, and electronics in a unified engineering simulation environment; AIM, a single-window application integrating structural fluids and electromagnetics simulation; SCADE, a solution for embedded software simulation and code production; 3-D direct modeling technology providing a CAD-neutral environment; and academic product suite with a portfolio of academic products based on associate, research, and teaching. The company was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.