DeFi Technologies (NASDAQ:DEFT) & Parsons (NYSE:PSN) Critical Analysis

DeFi Technologies (NASDAQ:DEFT) and Parsons (NYSE:PSN) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Insider & Institutional Ownership

98.0% of Parsons shares are held by institutional investors. 1.1% of Parsons 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DeFi Technologies and Parsons, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DeFi Technologies	0	0	2	0	3.00
Parsons	0	4	7	1	2.75

DeFi Technologies presently has a consensus target price of $6.25, suggesting a potential upside of 106.27%. Parsons has a consensus target price of $84.30, suggesting a potential upside of 12.63%. Given DeFi Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe DeFi Technologies is more favorable than Parsons.

Profitability

This table compares DeFi Technologies and Parsons’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DeFi Technologies	62.45%	171.79%	18.71%
Parsons	3.86%	13.01%	5.91%

Volatility & Risk

DeFi Technologies has a beta of 4.02, indicating that its share price is 302% more volatile than the S&P 500. Comparatively, Parsons has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Earnings & Valuation

This table compares DeFi Technologies and Parsons”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DeFi Technologies	$40.30 million	25.32	-$28.50 million	$0.29	10.45
Parsons	$6.75 billion	1.19	$235.05 million	$2.37	31.58

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

Summary

Parsons beats DeFi Technologies on 8 of the 15 factors compared between the two stocks.

About DeFi Technologies

DeFi Technologies, Inc. engages in the provision of investment services. It plans to acquire equity, debt, or other securities of publicly traded or private companies or other entities. The firm offers DeFi ETNs, DeFi Governance, DeFi Venture and DeFi Treasury. The company was founded by Olivier Francois Roussy Newton and Wouter Witvoet on April 14, 1986 and is headquartered in Toronto, Canada.

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.