Parsons Corporation (PSN) vs Science Applications International Corporation (SAIC)

Parsons Corporation and Science Applications International Corporation are both Information Technology Services companies. Science Applications International Corporation is the larger, with a market value of $5.6B against $4.5B — 1.2× the size. Science Applications International Corporation trades at the lower P/E: 15.4× against 29.3×. Science Applications International Corporation grew revenue faster over the last twelve months: −0.78% against −5.84%. Science Applications International Corporation has the higher net margin (5.13% vs 2.50%) and the higher return on invested capital (9.75% vs 4.90%). Across the 22 metrics below, Science Applications International Corporation leads on 13 and Parsons Corporation on 9.

Valuation

Metric PSN SAIC Information Technology Services median
P/E 29.29 15.37 14.63
P/S 0.73 0.76 1.13
P/B 1.68 3.92 2.10
Price to free cash flow 14.91 9.08 10.11
EV/EBITDA 12.97 10.66 8.56
EV/Sales 0.92 1.08 1.20
Earnings yield 3.41% 6.51% 4.56%
Free cash flow yield 6.71% 11.01% 4.37%

Profitability

Metric PSN SAIC Information Technology Services median
Gross margin 21.96% 12.65% 31.05%
Operating margin 4.93% 8.00% 3.30%
Net margin 2.50% 5.13% 2.09%
Free cash flow margin 4.91% 8.36% 0.00%
Return on equity 5.86% 25.74% 4.12%
Return on assets 2.66% 7.15% 0.61%
Return on invested capital 4.90% 9.75% 0.57%

Growth

Metric PSN SAIC Information Technology Services median
Revenue growth (TTM) (5.84%) (0.78%) 7.12%
EPS growth (last fiscal year) 3.77% 7.39% —
Revenue growth, 5-year CAGR 10.18% 0.58% 7.71%
Net income growth, 5-year CAGR 19.60% 11.36% 0.00%

Health

Metric PSN SAIC Information Technology Services median
Debt to equity 0.54 1.73 0.45
Current ratio 1.66 1.20 1.66
Net debt to EBITDA 1.43 3.44 0.44

Dividend

Metric PSN SAIC Information Technology Services median
Dividend yield — 1.14% 1.21%
Payout ratio 0.00 0.16 0.00

Size

Metric PSN SAIC Information Technology Services median
Market cap 4.53b 5.55b 1.36b

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