Science Applications International (NYSE:SAIC) and Pareteum (NASDAQ:TEUM) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.
Risk and Volatility
Science Applications International has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Pareteum has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500.
67.3% of Science Applications International shares are owned by institutional investors. Comparatively, 6.8% of Pareteum shares are owned by institutional investors. 2.1% of Science Applications International shares are owned by insiders. Comparatively, 3.4% of Pareteum shares are owned 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.
Science Applications International pays an annual dividend of $1.24 per share and has a dividend yield of 1.8%. Pareteum does not pay a dividend. Science Applications International pays out 35.1% of its earnings in the form of a dividend.
This table compares Science Applications International and Pareteum’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Science Applications International||4.29%||61.00%||10.04%|
Valuation and Earnings
This table compares Science Applications International and Pareteum’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||$4.45 billion||0.66||$179.00 million||$3.53||19.66|
|Pareteum||$13.55 million||12.37||-$12.46 million||($0.84)||-2.05|
Science Applications International has higher revenue and earnings than Pareteum. Pareteum 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.
This is a summary of recent recommendations and price targets for Science Applications International and Pareteum, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Science Applications International||0||4||2||0||2.33|
Science Applications International presently has a consensus target price of $84.83, indicating a potential upside of 22.24%. Given Science Applications International’s higher possible upside, analysts clearly believe Science Applications International is more favorable than Pareteum.
Science Applications International beats Pareteum on 12 of the 16 factors compared between the two stocks.
Science Applications International Company Profile
Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. Its offerings include engineering; technology and equipment platform integration; 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. The company serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; the U.S. Defense Logistics Agency; the National Aeronautics and Space Administration; the U.S. Department of State; and the U.S. Department of Homeland Security. 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.
Pareteum Company Profile
Pareteum Corporation operates a communications cloud services platform in Europe and internationally. Its platform provides mobility, messaging, and security services and applications, with a single-sign-on, application program interface (API), and software development suite. The company's platform hosts integrated IT/back office and core network functionality for mobile network operators, as well as for enterprises to implement and leverage mobile communications solutions on a SaaS, PaaS, or IaaS basis. It also offers operational support system for channel partners with APIs for integration with third party systems, workflows for complex application orchestration, and customer support with branded portals and plug-ins for various other applications. Pareteum Corporation serves the markets of Internet of Things, mobile virtual network operators, smart cities, and application developers. The company was formerly known as Elephant Talk Communications Corp. and changed its name to Pareteum Corporation in November 2016. Pareteum Corporation is based in New York, New York.
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