Contrasting V2X (NYSE:VVX) and Jacobs Solutions (NYSE:J)

V2X (NYSE:VVX) and Jacobs Solutions (NYSE:J) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Valuation and Earnings

This table compares V2X and Jacobs Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
V2X	$4.48 billion	0.47	$77.88 million	$2.44	27.67
Jacobs Solutions	$12.03 billion	1.26	$289.34 million	$3.65	35.27

Jacobs Solutions has higher revenue and earnings than V2X. V2X is trading at a lower price-to-earnings ratio than Jacobs Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares V2X and Jacobs Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
V2X	1.74%	15.64%	5.25%
Jacobs Solutions	3.49%	20.59%	6.70%

Analyst Ratings

This is a summary of recent ratings and target prices for V2X and Jacobs Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
V2X	2	4	3	1	2.30
Jacobs Solutions	0	6	6	0	2.50

V2X currently has a consensus price target of $72.22, indicating a potential upside of 6.97%. Jacobs Solutions has a consensus price target of $156.60, indicating a potential upside of 21.63%. Given Jacobs Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Jacobs Solutions is more favorable than V2X.

Volatility and Risk

V2X has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500. Comparatively, Jacobs Solutions has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Insider & Institutional Ownership

95.2% of V2X shares are owned by institutional investors. Comparatively, 85.7% of Jacobs Solutions shares are owned by institutional investors. 1.1% of V2X shares are owned by company insiders. Comparatively, 0.5% of Jacobs Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Jacobs Solutions beats V2X on 12 of the 15 factors compared between the two stocks.

About V2X

V2X, Inc. provides critical mission solutions and support services to defense clients worldwide. It offers a suite of integrated solutions across the operations and logistics, aerospace, training, and technology markets to national security, defense, civilian, and international clients. The company was incorporated in 2014 and is headquartered in Mclean, Virginia.

About Jacobs Solutions

Jacobs Solutions Inc. provides consulting, technical, engineering, scientific, and project delivery services for the government and private sectors in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. It operates through Critical Mission Solutions, People & Places Solutions, Divergent Solutions, and PA Consulting segments. The company offers cyber, data analytics, systems and software application integration and consulting, enterprise level and mission IT, design, nuclear, and enterprise level operations and maintenance services; software development, testing, mission integration, program management, research, development, test, evaluation services, training, and environmental remediation services; and other technical consulting solutions, as well as construction and construction management services. It also provides consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport industries. The company was founded in 1947 and is headquartered in Dallas, Texas.