Contrasting Serve Robotics (NASDAQ:SERV) & Science Applications International (NASDAQ:SAIC)

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

Risk & Volatility

Science Applications International has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Serve Robotics has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Earnings and Valuation

This table compares Science Applications International and Serve Robotics”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	$7.26 billion	0.58	$362.00 million	$7.69	12.63
Serve Robotics	$2.65 million	260.77	-$101.36 million	($1.59)	-5.74

Science Applications International has higher revenue and earnings than Serve Robotics. Serve Robotics 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.

Insider and Institutional Ownership

76.0% of Science Applications International shares are owned by institutional investors. 0.4% of Science Applications International shares are owned by insiders. Comparatively, 5.5% of Serve Robotics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Science Applications International and Serve Robotics’ 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%
Serve Robotics	-3,821.98%	-38.54%	-36.93%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Science Applications International and Serve Robotics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Science Applications International	1	7	3	0	2.18
Serve Robotics	1	0	5	2	3.00

Science Applications International presently has a consensus target price of $113.89, suggesting a potential upside of 17.22%. Serve Robotics has a consensus target price of $18.60, suggesting a potential upside of 103.72%. Given Serve Robotics’ stronger consensus rating and higher possible upside, analysts plainly believe Serve Robotics is more favorable than Science Applications International.

Summary

Science Applications International beats Serve Robotics on 8 of the 15 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 Serve Robotics

Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc. in July 2023. Serve Robotics Inc. was founded in 2017 and is based in Redwood City, California.