Science Applications International (SAIC) versus Its Peers Financial Contrast

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

Risk and Volatility

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

Institutional & 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. 0.4% of Science Applications International shares are held by insiders. Comparatively, 11.7% of shares of all “IT Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Science Applications International and its rivals’ 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%

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 33.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Science Applications International and its rivals, 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	389	2504	5204	183	2.63

As a group, “IT Services” companies have a potential upside of 23.07%. Given Science Applications International’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Science Applications International has less favorable growth aspects than its rivals.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Science Applications International	$7.48 billion	$362.00 million	12.27
Science Applications International Competitors	$23.66 billion	$365.88 million	25.10

Science Applications International’s rivals have higher revenue and earnings than Science Applications International. Science Applications International is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Science Applications International rivals beat Science Applications International on 9 of the 15 factors compared.

About Science Applications International

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.