Critical Contrast: Unisys (NYSE:UIS) versus Parsons (NYSE:PSN)

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

Insider and Institutional Ownership

95.5% of Unisys shares are owned by institutional investors. Comparatively, 99.6% of Parsons shares are owned by institutional investors. 2.4% of Unisys shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Unisys and Parsons, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unisys 0 1 2 0 2.67
Parsons 0 4 6 0 2.60

Unisys currently has a consensus price target of $15.00, suggesting a potential upside of 37.49%. Parsons has a consensus price target of $39.50, suggesting a potential upside of 3.89%. Given Unisys’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Unisys is more favorable than Parsons.

Valuation & Earnings

This table compares Unisys and Parsons’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Unisys $2.83 billion 0.24 $75.50 million N/A N/A
Parsons $3.56 billion 1.06 $222.34 million N/A N/A

Parsons has higher revenue and earnings than Unisys.

Profitability

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

Net Margins Return on Equity Return on Assets
Unisys 0.63% -14.15% 7.05%
Parsons N/A N/A N/A

Summary

Parsons beats Unisys on 6 of the 11 factors compared between the two stocks.

About Unisys

Unisys Corporation operates as an information technology company worldwide. It operates in two segments, Services and Technology. The Services segment offers cloud and infrastructure services, application services, and business process outsourcing services. The Technology segment designs and develops software, and hardware and other related products. This segment offers a range of data-center, infrastructure management, and cloud computing services for clients to virtualize and automate their data-center environments. It also provides industry application products, which allow law enforcement agencies to solve crime and social services case workers assist families; travel and transportation companies manage freight and distribution; life sciences and healthcare companies manage medical devices; and financial institutions deliver omnichannel banking. In addition, this segments products include Unisys ClearPath Forward, a software operating environment for high-intensity enterprise computing; and Unisys Stealth security software, which enables trusted identities to access micro-segmented critical assets and safely communicate through secure and encrypted channels. The company serves customers in the government, financial services, and commercial markets through direct sales force, distributors, resellers, and alliance partners. Unisys Corporation was founded in 1886 and is based in Blue Bell, Pennsylvania.

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.

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