Science Applications International (SAIC) vs. Its Competitors Head-To-Head Survey

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

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Science Applications International	$7.48 billion	$362.00 million	12.25
Science Applications International Competitors	$5.66 billion	$365.88 million	25.33

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

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.

Analyst Ratings

This is a breakdown of recent ratings for Science Applications International and its peers, 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	2485	5201	183	2.63

As a group, “IT Services” companies have a potential upside of 18.75%. Given Science Applications International’s peers stronger consensus rating and higher probable upside, analysts plainly believe Science Applications International has less favorable growth aspects than its peers.

Institutional and Insider Ownership

76.0% of Science Applications International shares are held by institutional investors. Comparatively, 62.6% of shares of all “IT Services” companies are held by institutional investors. 0.7% of Science Applications International shares are held by company insiders. Comparatively, 12.0% of shares of all “IT Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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	5.35%	33.36%	9.90%
Science Applications International Competitors	-118.50%	-17.24%	-6.05%

Summary

Science Applications International peers 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.