Comparing ePlus (NASDAQ:PLUS) & Acorn Energy (NASDAQ:ACFN)

ePlus (NASDAQ:PLUS) and Acorn Energy (NASDAQ:ACFN) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Valuation & Earnings

This table compares ePlus and Acorn Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ePlus	$2.44 billion	1.03	$132.64 million	$4.81	20.19
Acorn Energy	$11.48 million	3.36	$2.51 million	$0.88	17.33

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

Profitability

This table compares ePlus and Acorn Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ePlus	5.02%	11.93%	6.85%
Acorn Energy	23.04%	17.04%	10.55%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ePlus and Acorn Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ePlus	0	2	0	0	2.00
Acorn Energy	0	1	0	0	2.00

Volatility and Risk

ePlus has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Acorn Energy has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Institutional and Insider Ownership

93.8% of ePlus shares are held by institutional investors. 2.2% of ePlus shares are held by company insiders. Comparatively, 35.6% of Acorn Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

ePlus beats Acorn Energy on 6 of the 11 factors compared between the two stocks.

About ePlus

ePlus inc. is a technology solutions provider that helps businesses and public-sector organizations plan, acquire, implement and manage information technology. Its offerings include data center and cloud infrastructure, networking, cybersecurity, collaboration tools, software and related professional and managed services. The company also provides financing solutions for technology purchases, including leasing and other equipment financing arrangements. Founded in 1990, ePlus serves customers across the United States and the United Kingdom.

About Acorn Energy

Acorn Energy, Inc. is a technology company focused on energy infrastructure management and remote monitoring solutions. Through its operating businesses, the company develops systems that help customers monitor, control and maintain distributed energy assets and other critical infrastructure. Acorn Energy’s principal operating business is OmniMetrix, which provides remote monitoring and control solutions for backup power generators and cathodic protection systems. Its products use communications networks and cloud-based software to provide alerts, operating information and other data intended to help customers improve equipment reliability, maintenance and regulatory compliance.