Kyndryl Holdings, Inc. (KD) vs Parsons Corporation (PSN)

Kyndryl Holdings, Inc. and Parsons Corporation are both Information Technology Services companies. Parsons Corporation is the larger, with a market value of $5.3B against $3.5B — 1.5× the size. Parsons Corporation trades at the lower P/E: 32.3× against 46.7×. Kyndryl Holdings, Inc. grew revenue faster over the last twelve months: −0.74% against −2.67%. Parsons Corporation has the higher net margin (2.33% vs 0.52%) and the lower return on invested capital (5.02% vs 6.82%). Across the 22 metrics below, Parsons Corporation leads on 14 and Kyndryl Holdings, Inc. on 8.

Valuation

Metric KD PSN Information Technology Services median
P/E 46.66 32.27 16.12
P/S 0.24 0.81 1.14
P/B 3.03 1.87 1.73
Price to free cash flow 20.98 12.56 13.77
EV/EBITDA 1.89 13.85 9.89
EV/Sales 0.40 0.98 1.34
Earnings yield 2.14% 3.10% 3.10%
Free cash flow yield 4.77% 7.96% 0.06%

Profitability

Metric KD PSN Information Technology Services median
Gross margin 22.32% 22.21% 30.04%
Operating margin 2.61% 4.84% 1.81%
Net margin 0.52% 2.33% 0.79%
Free cash flow margin 1.14% 6.49% 0.00%
Return on equity 6.20% 5.45% 0.00%
Return on assets 0.68% 2.52% 0.00%
Return on invested capital 6.82% 5.02% 0.00%

Growth

Metric KD PSN Information Technology Services median
Revenue growth (TTM) (0.74%) (2.67%) 4.85%
EPS growth (last fiscal year) (19.05%) 3.77% 3.57%
Revenue growth, 5-year CAGR (4.15%) 10.18% 6.93%
Net income growth, 5-year CAGR 0.00% 19.60% 0.00%

Health

Metric KD PSN Information Technology Services median
Debt to equity 3.45 0.49 0.31
Current ratio 0.95 1.59 1.69
Net debt to EBITDA 0.44 1.43 0.55

Dividend

Metric KD PSN Information Technology Services median
Dividend yield — — 1.97%
Payout ratio — — 0.29

Size

Metric KD PSN Information Technology Services median
Market cap 3.52b 5.31b 1.02b

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