Comparing Science Applications International (NASDAQ:SAIC) & C3.ai (NYSE:AI)

C3.ai (NYSE:AI) and Science Applications International (NASDAQ:SAIC) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for C3.ai and Science Applications International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C3.ai	5	6	2	1	1.93
Science Applications International	0	2	0	1	2.67

C3.ai currently has a consensus price target of $21.00, indicating a potential upside of 91.87%. Given C3.ai’s higher possible upside, equities analysts plainly believe C3.ai is more favorable than Science Applications International.

Earnings & Valuation

This table compares C3.ai and Science Applications International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
C3.ai	$389.06 million	3.96	-$288.70 million	($2.83)	-3.87
Science Applications International	$7.48 billion	0.53	$362.00 million	$7.82	11.20

Science Applications International has higher revenue and earnings than C3.ai. C3.ai 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 & Institutional Ownership

39.0% of C3.ai shares are owned by institutional investors. Comparatively, 76.0% of Science Applications International shares are owned by institutional investors. 26.5% of C3.ai shares are owned by company insiders. Comparatively, 0.4% of Science Applications International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

C3.ai has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Science Applications International has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Profitability

This table compares C3.ai and Science Applications International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C3.ai	-108.06%	-46.51%	-37.91%
Science Applications International	5.05%	33.19%	9.62%

Summary

Science Applications International beats C3.ai on 9 of the 14 factors compared between the two stocks.

About C3.ai

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.

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.