Head-To-Head Survey: ANSYS (NASDAQ:ANSS) and GSE Systems (NASDAQ:GVP)

ANSYS (NASDAQ:ANSS) and GSE Systems (NASDAQ:GVP) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares ANSYS and GSE Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ANSYS	22.05%	11.83%	8.77%
GSE Systems	-19.37%	-129.71%	-37.00%

Insider and Institutional Ownership

92.4% of ANSYS shares are held by institutional investors. Comparatively, 21.8% of GSE Systems shares are held by institutional investors. 0.5% of ANSYS shares are held by company insiders. Comparatively, 8.2% of GSE Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

ANSYS has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, GSE Systems has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for ANSYS and GSE Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ANSYS	2	6	1	0	1.89
GSE Systems	0	0	1	0	3.00

ANSYS currently has a consensus target price of $322.75, suggesting a potential downside of 1.65%. GSE Systems has a consensus target price of $13.00, suggesting a potential upside of 372.73%. Given GSE Systems’ stronger consensus rating and higher possible upside, analysts plainly believe GSE Systems is more favorable than ANSYS.

Valuation & Earnings

This table compares ANSYS and GSE Systems’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ANSYS	$2.27 billion	12.62	$500.41 million	$5.73	57.27
GSE Systems	$45.04 million	0.20	-$8.72 million	($3.54)	-0.78

ANSYS has higher revenue and earnings than GSE Systems. GSE Systems is trading at a lower price-to-earnings ratio than ANSYS, indicating that it is currently the more affordable of the two stocks.

Summary

ANSYS beats GSE Systems on 9 of the 13 factors compared between the two stocks.

About ANSYS

ANSYS, Inc. develops and markets engineering simulation software and services for engineers, designers, researchers, and students in the United States, Japan, Germany, China, Hong Kong, South Korea, rest of Europe, the Middle East, Africa, and internationally. It offers structural analysis product suite that provides simulation tools for product design and optimization; the Ansys Mechanical product, an element analysis software; LS-DYNA solver for multiphysics simulation; and power analysis and optimization software suite. The company also offers electronics product suite that provides electromagnetic field simulation software for designing electronic and electromechanical products; Ansys High Frequency Structure Simulator product for radio frequency and microwave design; SCADE product suite, a solution for embedded software simulation, code production, and automated certification; fluids product suite that enables modeling of fluid flow and other related physical phenomena; Ansys Fluent computational fluid dynamics software package; Ansys RedHawk-SC for electronic design automation; Ansys Optics software; and mission-simulation, modeling, testing, and analysis software. In addition, it offers Ansys Granta MI system for materials information management; Ansys Granta Selector technology for materials selection and graphical analysis; CES EduPack product, a set of teaching resources; Granta Materials Data for Simulation; Ansys Lumerical product, a photonics simulation software solution; safety-certified embedded software solutions; Discovery product family for use in the simulation of product design; academic product suite for research and teaching settings. ANSYS, Inc. was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.

About GSE Systems

GSE Systems, Inc. engages in the provision of professional and technical engineering services, staffing services, and simulation software to clients in the power and process industries in the United States, Asia, Europe, and internationally. It operates in two segments: Engineering and Workforce Solutions. The Engineering segment provides various technical engineering services for ASME programs; and simulation software and services, including operator training systems for the nuclear, fossil fuel power generation, and process industries. The segment also offers in-service testing for engineering programs focused on ASME OM code; in-service inspection for specialty engineering including ASME Section XI; software solutions; mechanical and civil/structural design; electrical, instrumentation, and controls design; digital controls/cyber security; and fire protection solutions for nuclear power plant design modifications. The Workforce Solutions segment supports project lifecycles and provides technical talent and specialty services comprising professional and training services, procedure writing services, and flexible staffing and talent acquisition services for energy, engineering, construction, government, infrastructure, environmental, and manufacturing industries, which include reactor operations instructors, procedure writers, project managers, engineers, work management specialists, planners, and training material developers. The company markets its products and services through a network of direct sales staff, agents and representatives, and strategic alliance partners. GSE Systems, Inc. was founded in 1971 and is headquartered in Columbia, Maryland.