C3.ai (NYSE:AI) versus Science Applications International (NASDAQ:SAIC) Critical Survey

Science Applications International (NASDAQ:SAIC) and C3.ai (NYSE:AI) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Volatility & Risk

Science Applications International has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, C3.ai has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Science Applications International and C3.ai, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Science Applications International	0	2	0	1	2.67
C3.ai	5	6	2	1	1.93

C3.ai has a consensus target price of $21.00, indicating a potential upside of 94.90%. Given C3.ai’s higher probable upside, analysts clearly believe C3.ai is more favorable than Science Applications International.

Earnings & Valuation

This table compares Science Applications International and C3.ai”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Science Applications International	$7.48 billion	0.52	$362.00 million	$7.82	11.08
C3.ai	$389.06 million	3.90	-$288.70 million	($2.83)	-3.81

Science Applications International has higher revenue and earnings than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than Science Applications International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Science Applications International and C3.ai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Science Applications International	5.05%	33.19%	9.62%
C3.ai	-108.06%	-46.51%	-37.91%

Insider & Institutional Ownership

76.0% of Science Applications International shares are owned by institutional investors. Comparatively, 39.0% of C3.ai shares are owned by institutional investors. 0.7% of Science Applications International shares are owned by insiders. Comparatively, 26.5% of C3.ai shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Science Applications International beats C3.ai on 9 of the 14 factors compared between the two stocks.

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.

About C3.ai

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.