Grid Dynamics (NASDAQ:GDYN) versus Science Applications International (NASDAQ:SAIC) Head to Head Review

Science Applications International (NASDAQ:SAIC) and Grid Dynamics (NASDAQ:GDYN) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Valuation & Earnings

This table compares Science Applications International and Grid Dynamics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Science Applications International	$7.26 billion	0.60	$358.00 million	$7.69	13.02
Grid Dynamics	$411.83 million	1.20	$9.67 million	$0.10	57.70

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

Institutional and Insider Ownership

76.0% of Science Applications International shares are held by institutional investors. Comparatively, 71.2% of Grid Dynamics shares are held by institutional investors. 0.4% of Science Applications International shares are held by insiders. Comparatively, 6.5% of Grid Dynamics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Science Applications International and Grid Dynamics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Science Applications International	1	7	3	0	2.18
Grid Dynamics	1	1	5	0	2.57

Science Applications International currently has a consensus target price of $112.44, suggesting a potential upside of 12.32%. Grid Dynamics has a consensus target price of $10.60, suggesting a potential upside of 83.71%. Given Grid Dynamics’ stronger consensus rating and higher probable upside, analysts plainly believe Grid Dynamics is more favorable than Science Applications International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Science Applications International	4.93%	33.15%	9.44%
Grid Dynamics	2.35%	1.46%	1.28%

Risk and Volatility

Science Applications International has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

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 Grid Dynamics

Grid Dynamics Holdings, Inc., together with its subsidiaries, provides technology consulting, platform and product engineering, and analytics services in North America, Europe, and internationally. It offers cloud platform and product engineering services, such as architecting, designing, and building scalable and secure cloud-based platforms and business applications; and AI/machine learning and data platform engineering services that build platforms to facilitate batch and streaming data ingestion, quality governance, orchestration, semantic modeling, observability, and analysis at scale. The company provides digital engagement services, including digital ecosystem design and implementation; and supply chain, Internet of Thing, and advanced manufacturing, which focuses on transforming traditional operations into smart and connected ecosystems. It serves customers that operate in the tech, media, telecommunications, retail, consumer packaged goods, manufacturing, and finance industries. The company was formerly known as ChaSerg Technology Acquisition Corp. and changed its name to Grid Dynamics Holdings, Inc. Grid Dynamics Holdings, Inc. was founded in 2006 and is headquartered in San Ramon, California.