Science Applications International (NYSE: SAIC) is one of 184 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare Science Applications International to related businesses based on the strength of its institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Earnings & Valuation

This table compares Science Applications International and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Science Applications International $4.45 billion $148.00 million 20.41
Science Applications International Competitors $2.79 billion $289.83 million 298.07

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

Risk & Volatility

Science Applications International has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Science Applications International’s peers have a beta of 1.15, indicating that their average share price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Science Applications International and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Science Applications International 0 3 4 0 2.57
Science Applications International Competitors 731 4652 7430 170 2.54

Science Applications International presently has a consensus target price of $80.71, indicating a potential upside of 10.46%. As a group, “IT Services & Consulting” companies have a potential upside of 3.45%. Given Science Applications International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Science Applications International is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Science Applications International 3.77% 48.69% 8.12%
Science Applications International Competitors -19.54% -251.28% -3.30%

Insider & Institutional Ownership

63.5% of Science Applications International shares are held by institutional investors. Comparatively, 61.4% of shares of all “IT Services & Consulting” companies are held by institutional investors. 2.9% of Science Applications International shares are held by company insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Science Applications International pays an annual dividend of $1.24 per share and has a dividend yield of 1.7%. Science Applications International pays out 34.6% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.6% and pay out 37.7% of their earnings in the form of a dividend. Science Applications International is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Science Applications International beats its peers on 10 of the 15 factors compared.

Science Applications International Company Profile

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.

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