SS&C Technologies (NASDAQ:SSNC) and Parsons (NYSE:PSN) Head-To-Head Comparison

SS&C Technologies (NASDAQ:SSNC) and Parsons (NYSE:PSN) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Earnings & Valuation

This table compares SS&C Technologies and Parsons”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SS&C Technologies	$6.27 billion	3.03	$796.90 million	$3.48	23.28
Parsons	$6.29 billion	0.76	$241.14 million	$1.45	31.06

SS&C Technologies has higher earnings, but lower revenue than Parsons. SS&C Technologies is trading at a lower price-to-earnings ratio than Parsons, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SS&C Technologies and Parsons’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SS&C Technologies	13.16%	21.20%	7.19%
Parsons	2.50%	8.10%	3.75%

Risk & Volatility

SS&C Technologies has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Parsons has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Insider and Institutional Ownership

96.9% of SS&C Technologies shares are held by institutional investors. Comparatively, 98.0% of Parsons shares are held by institutional investors. 16.0% of SS&C Technologies shares are held by insiders. Comparatively, 1.3% of Parsons shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SS&C Technologies and Parsons, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SS&C Technologies	0	2	7	1	2.90
Parsons	1	4	11	0	2.62

SS&C Technologies presently has a consensus price target of $92.62, suggesting a potential upside of 14.31%. Parsons has a consensus price target of $63.00, suggesting a potential upside of 39.87%. Given Parsons’ higher possible upside, analysts clearly believe Parsons is more favorable than SS&C Technologies.

Summary

SS&C Technologies beats Parsons on 10 of the 15 factors compared between the two stocks.

About SS&C Technologies

SS&C Technologies Holdings, Inc. engages in the development and provision of software solutions to the financial services and healthcare industries. It operates through the following geographical segments: United States, Europe, Middle East and Africa, Asia Pacific and Japan, Canada, and the Americas, excluding the United States and Canada. Its products include advent genesis, antares, asset allocators, AWD, axys, BANC mall, BRIX, DST vision, evare, lightning, and moxy. The company was founded by William Charles Stone in March 1986 and is headquartered in Windsor, CT.

About Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.