Analyzing Gartner (NYSE:IT) & Science Applications International (NASDAQ:SAIC)

Gartner (NYSE:IT) and Science Applications International (NASDAQ:SAIC) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Profitability

This table compares Gartner and Science Applications International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gartner	11.99%	525.46%	13.45%
Science Applications International	5.13%	34.68%	9.45%

Valuation and Earnings

This table compares Gartner and Science Applications International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gartner	$6.50 billion	1.74	$729.23 million	$11.15	16.03
Science Applications International	$7.40 billion	0.75	$358.00 million	$8.55	15.56

Gartner has higher earnings, but lower revenue than Science Applications International. Science Applications International is trading at a lower price-to-earnings ratio than Gartner, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Gartner and Science Applications International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gartner	2	6	2	1	2.18
Science Applications International	1	8	2	0	2.09

Gartner currently has a consensus price target of $187.30, indicating a potential upside of 4.78%. Science Applications International has a consensus price target of $125.22, indicating a potential downside of 5.87%. Given Gartner’s stronger consensus rating and higher possible upside, equities analysts plainly believe Gartner is more favorable than Science Applications International.

Risk and Volatility

Gartner has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Science Applications International has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Insider & Institutional Ownership

91.5% of Gartner shares are held by institutional investors. Comparatively, 76.0% of Science Applications International shares are held by institutional investors. 2.6% of Gartner shares are held by insiders. Comparatively, 0.7% of Science Applications International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Gartner beats Science Applications International on 13 of the 14 factors compared between the two stocks.

About Gartner

Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

About Science Applications International

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company’s offerings include engineering; technology integration; IT modernization; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers’ IT infrastructure, as well as cloud migration, managed services, infrastructure modernization, and enterprise IT-as-a-service solutions. It serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; Department of Defense agencies; National Aeronautics and Space Administration; the U.S. Department of State; Department of Justice; Department of Homeland Security; and various intelligence community agencies, as well as U.S. federal civilian agencies. The company was formerly known as SAIC Gemini, Inc. and changed its name to Science Applications International Corporation in September 2013. Science Applications International Corporation was founded in 1969 and is headquartered in Reston, Virginia.