Comparing Parsons (NYSE:PSN) and XBP Global (NASDAQ:XBP)

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

Volatility and Risk

XBP Global has a beta of -0.47, indicating that its stock price is 147% less volatile than the S&P 500. Comparatively, Parsons has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Institutional and Insider Ownership

15.7% of XBP Global shares are held by institutional investors. Comparatively, 98.0% of Parsons shares are held by institutional investors. 31.4% of XBP Global shares are held by company insiders. Comparatively, 1.3% of Parsons shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XBP Global	1	0	1	0	2.00
Parsons	1	4	11	0	2.62

XBP Global presently has a consensus price target of $5.00, indicating a potential upside of 55.76%. Parsons has a consensus price target of $63.00, indicating a potential upside of 39.87%. Given XBP Global’s higher probable upside, research analysts clearly believe XBP Global is more favorable than Parsons.

Valuation and Earnings

This table compares XBP Global and Parsons”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XBP Global	$791.04 million	0.05	$1.10 billion	($3.70)	-0.87
Parsons	$6.36 billion	0.76	$241.14 million	$1.45	31.06

XBP Global has higher earnings, but lower revenue than Parsons. XBP Global is trading at a lower price-to-earnings ratio than Parsons, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XBP Global	134.88%	1,328.38%	122.34%
Parsons	2.50%	8.10%	3.75%

Summary

Parsons beats XBP Global on 8 of the 14 factors compared between the two stocks.

About XBP Global

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.

About Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.