Science Applications International (SAIC) and Its Peers Critical Contrast

Science Applications International (NASDAQ:SAIC) is one of 55 public companies in the “IT Services” industry, but how does it contrast to its competitors? We will compare Science Applications International to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Science Applications International	5.35%	33.36%	9.90%
Science Applications International Competitors	-118.79%	-23.97%	-8.61%

Risk and Volatility

Science Applications International has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Science Applications International’s competitors have a beta of -8.09, meaning that their average share price is 909% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Science Applications International and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Science Applications International	0	1	0	0	2.00
Science Applications International Competitors	368	2484	5200	183	2.63

As a group, “IT Services” companies have a potential upside of 18.50%. Given Science Applications International’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Science Applications International has less favorable growth aspects than its competitors.

Dividends

Science Applications International pays an annual dividend of $1.48 per share and has a dividend yield of 1.5%. Science Applications International pays out 17.9% of its earnings in the form of a dividend. As a group, “IT Services” companies pay a dividend yield of 1.5% and pay out 30.3% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Science Applications International and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Science Applications International	$7.48 billion	$362.00 million	12.31
Science Applications International Competitors	$5.66 billion	$365.85 million	26.31

Science Applications International has higher revenue, but lower earnings than its competitors. Science Applications International is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

76.0% of Science Applications International shares are owned by institutional investors. Comparatively, 62.6% of shares of all “IT Services” companies are owned by institutional investors. 0.4% of Science Applications International shares are owned by company insiders. Comparatively, 11.8% of shares of all “IT Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Science Applications International competitors beat Science Applications International on 8 of the 15 factors compared.

Science Applications International Company Profile

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.