Applied Digital Corporation (APLD) vs Parsons Corporation (PSN)

Applied Digital Corporation and Parsons Corporation are both Information Technology Services companies. Applied Digital Corporation is the larger, with a market value of $6.2B against $4.7B — 1.3× the size. Applied Digital Corporation has negative trailing earnings, so its P/E is not meaningful; Parsons Corporation trades at 30.0×. Applied Digital Corporation grew revenue faster over the last twelve months: 244.7% against −5.84%. Parsons Corporation has the higher net margin (2.50% vs −52.7%) and the higher return on invested capital (4.90% vs −3.66%). Across the 18 metrics below, Parsons Corporation leads on 13 and Applied Digital Corporation on 5.

Valuation

Metric APLD PSN Information Technology Services median
P/E n/m 30.03 16.42
P/S 5.92 0.75 1.06
P/B 3.27 1.72 1.57
Price to free cash flow n/m 15.29 11.62
EV/EBITDA n/m 13.24 9.74
EV/Sales 9.42 0.94 1.23
Earnings yield (8.04%) 3.33% 4.25%
Free cash flow yield (84.66%) 6.54% 4.50%

Profitability

Metric APLD PSN Information Technology Services median
Gross margin 22.65% 21.96% 29.97%
Operating margin (31.11%) 4.93% 3.30%
Net margin (52.74%) 2.50% 2.09%
Free cash flow margin (501.19%) 4.91% 1.51%
Return on equity (35.35%) 5.86% 3.67%
Return on assets (6.65%) 2.66% 0.47%
Return on invested capital (3.66%) 4.90% 0.57%

Growth

Metric APLD PSN Information Technology Services median
Revenue growth (TTM) 244.65% (5.84%) 7.12%
EPS growth (last fiscal year) 21.55% 3.77% 1.38%
Revenue growth, 5-year CAGR — 10.18% 7.86%
Net income growth, 5-year CAGR 0.00% 19.60% 0.00%

Health

Metric APLD PSN Information Technology Services median
Debt to equity 3.97 0.54 0.45
Current ratio 2.56 1.66 1.66
Net debt to EBITDA (6.23) 1.43 0.45

Dividend

Metric APLD PSN Information Technology Services median
Dividend yield — — 1.97%
Payout ratio — — 0.30

Size

Metric APLD PSN Information Technology Services median
Market cap 6.17b 4.71b 1.11b

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