Parsons (NYSE: PSN) is one of 42 publicly-traded companies in the “Computer integrated systems design” industry, but how does it weigh in compared to its rivals? We will compare Parsons to related businesses based on the strength of its earnings, analyst recommendations, institutional ownership, risk, profitability, valuation and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Parsons 3.05% -35.74% 4.19%
Parsons Competitors -4.28% -1.62% 0.63%

Institutional & Insider Ownership

98.1% of Parsons shares are owned by institutional investors. Comparatively, 70.8% of shares of all “Computer integrated systems design” companies are owned by institutional investors. 0.2% of Parsons shares are owned by insiders. Comparatively, 11.9% of shares of all “Computer integrated systems design” companies 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.

Earnings & Valuation

This table compares Parsons and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Parsons $3.95 billion $120.53 million 21.40
Parsons Competitors $1.76 billion $53.41 million 15.58

Parsons has higher revenue and earnings than its rivals. Parsons is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Parsons and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Parsons 1 2 5 0 2.50
Parsons Competitors 521 1975 2611 109 2.44

Parsons currently has a consensus price target of $41.29, indicating a potential upside of 32.16%. As a group, “Computer integrated systems design” companies have a potential upside of 44.50%. Given Parsons’ rivals higher probable upside, analysts plainly believe Parsons has less favorable growth aspects than its rivals.

Summary

Parsons beats its rivals on 8 of the 12 factors compared.

Parsons Company Profile

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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