SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (NYSE: SAIC) and Silver Spring Networks (NYSE:SSNI) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Dividends

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION pays an annual dividend of $1.24 per share and has a dividend yield of 1.7%. Silver Spring Networks does not pay a dividend. SCIENCE APPLICATIONS INTERNATIONAL CORPORATION pays out 34.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares SCIENCE APPLICATIONS INTERNATIONAL CORPORATION and Silver Spring Networks’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION $4.32 billion 0.73 $304.00 million $3.58 20.49
Silver Spring Networks $452.27 million 1.91 -$19.70 million ($0.66) -24.42

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION has higher revenue and earnings than Silver Spring Networks. Silver Spring Networks is trading at a lower price-to-earnings ratio than SCIENCE APPLICATIONS INTERNATIONAL CORPORATION, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

64.3% of SCIENCE APPLICATIONS INTERNATIONAL CORPORATION shares are owned by institutional investors. Comparatively, 79.4% of Silver Spring Networks shares are owned by institutional investors. 2.9% of SCIENCE APPLICATIONS INTERNATIONAL CORPORATION shares are owned by company insiders. Comparatively, 29.6% of Silver Spring Networks shares 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.

Profitability

This table compares SCIENCE APPLICATIONS INTERNATIONAL CORPORATION and Silver Spring Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION 3.77% 48.69% 8.12%
Silver Spring Networks -7.47% N/A -5.55%

Risk & Volatility

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Silver Spring Networks has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for SCIENCE APPLICATIONS INTERNATIONAL CORPORATION and Silver Spring Networks, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION 0 3 5 0 2.63
Silver Spring Networks 0 10 2 0 2.17

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION currently has a consensus target price of $81.25, indicating a potential upside of 10.79%. Silver Spring Networks has a consensus target price of $14.95, indicating a potential downside of 7.23%. Given SCIENCE APPLICATIONS INTERNATIONAL CORPORATION’s stronger consensus rating and higher probable upside, equities research analysts plainly believe SCIENCE APPLICATIONS INTERNATIONAL CORPORATION is more favorable than Silver Spring Networks.

Summary

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION beats Silver Spring Networks on 10 of the 14 factors compared between the two stocks.

About SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Science Applications International Corporation (SAIC) is a provider of technical, engineering and enterprise information technology (IT) services. The Company provides its services primarily to the United States Government, including the Department of Defense (DoD), the intelligence community and federal civilian agencies. The Company provides engineering, systems integration and information technology offerings for government projects, and offers a range of services with a targeted emphasis on higher-end, differentiated technology services. The Company’s offerings include engineering; technology and equipment platform integration; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services, and end-to-end services spanning the design, development, integration, deployment, management and operations, sustainment and security of its customers’ entire IT infrastructure.

About Silver Spring Networks

Silver Spring Networks, Inc. is engaged in creating, building and deploying large-scale networks and solutions enabling the Internet of things (IoT) for critical infrastructure. The Company provides a networking platform and solutions that enable utilities to transform the power grid infrastructure into the smart grid. Its networking platform enables customers to communicate with devices connected to the power grid. Its networking platform comprises hardware, such as access points and relays; its communications modules; its SilverLinkOS network operating software, and its GridScape management and security software. It offers solutions built upon SilverLink Network and Data platforms, including advanced metering, distribution automation, demand-side management, street lights and its wireless Internet protocol version 6 (IPv6) network service for the IoT, Starfish. Through its managed application services, it manages the SilverLink Control Platform and SilverLink Applications.

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