Parsons (NYSE:PSN) versus Pareteum (NYSE:TEUM) Critical Review

Parsons (NYSE:PSN) and Pareteum (NASDAQ:TEUM) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Parsons and Pareteum, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Parsons 0 3 4 0 2.57
Pareteum 0 0 4 0 3.00

Parsons presently has a consensus price target of $37.33, suggesting a potential upside of 2.45%. Pareteum has a consensus price target of $7.00, suggesting a potential upside of 147.35%. Given Pareteum’s stronger consensus rating and higher possible upside, analysts plainly believe Pareteum is more favorable than Parsons.

Insider & Institutional Ownership

21.7% of Pareteum shares are held by institutional investors. 4.0% of Pareteum shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Parsons and Pareteum’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Parsons $3.56 billion 1.02 $222.34 million N/A N/A
Pareteum $32.44 million 9.74 -$12.98 million $0.09 31.44

Parsons has higher revenue and earnings than Pareteum.

Profitability

This table compares Parsons and Pareteum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Parsons N/A N/A N/A
Pareteum -32.36% -2.62% -1.97%

About Parsons

Parsons Corporation provides technology based solutions in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. It operates in two segments, Federal Solutions and Critical Infrastructure. The company offers cybersecurity software and engineering services, hardware prototyping, and other technical services to the U.S. Army and the United States intelligence community; ThunderRidge, a tool that assists cyber operational users to develop action plans, assess cyber threats, and disseminate situational awareness in real-time; and geospatial intelligence, big data analytics, and threat mitigation technology services to the defense, intelligence, space and command, control, communications, computer, cyber, intelligence, surveillance, and reconnaissance. It also provides mission planning for space situational awareness, small satellite systems integration, electronic warfare, directed energy modeling and simulation, and command and control systems and support to the Missile Defense Agency, the U.S. Air Force, and the U.S. Army; converged cyber-physical solutions for critical infrastructure, and global military mission readiness and training services to the Federal Aviation Administration and the U.S. Army; and technology services for advanced energy production systems, healthcare systems, environmental systems, and related infrastructure. In addition, the company offers intelligent transportation system management, train controls integration, smart cities software, and critical infrastructure cyber protection to the transportation authorities, rail, and transit entities; engineering services for complex infrastructure, including bridges and tunnels, roads and highways, airports, and rail and transit; and engineering, program management, and environmental solutions to private-sector industrial clients and public utilities. Parsons Corporation was founded in 1944 and is headquartered in Centreville, Virginia.

About Pareteum

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 Software as a Service (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. In addition, the company provides software solutions, which layer over disparate fixed, mobile, and IP networks to enable the deployment of converged communication services and applications for enterprise communications and core telecommunications markets; and Wi-Fi access on mobile devices through its SaaS platform. 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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