Reviewing Science Applications International (NASDAQ:SAIC) & Verra Mobility (NASDAQ:VRRM)

Verra Mobility (NASDAQ:VRRM) and Science Applications International (NASDAQ:SAIC) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Valuation & Earnings

This table compares Verra Mobility and Science Applications International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verra Mobility	$979.08 million	0.45	$136.63 million	$0.26	11.21
Science Applications International	$7.26 billion	0.75	$358.00 million	$8.55	15.30

Science Applications International has higher revenue and earnings than Verra Mobility. Verra Mobility 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

76.0% of Science Applications International shares are held by institutional investors. 1.3% of Verra Mobility shares are held by company insiders. Comparatively, 0.7% of Science Applications International shares are held 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.

Risk and Volatility

Verra Mobility has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Science Applications International has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Verra Mobility	4.40%	64.39%	11.46%
Science Applications International	5.13%	34.68%	9.45%

Analyst Recommendations

This is a summary of current recommendations and price targets for Verra Mobility and Science Applications International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verra Mobility	1	9	0	0	1.90
Science Applications International	1	8	2	0	2.09

Verra Mobility currently has a consensus price target of $6.83, indicating a potential upside of 134.42%. Science Applications International has a consensus price target of $125.22, indicating a potential downside of 4.29%. Given Verra Mobility’s higher probable upside, equities analysts clearly believe Verra Mobility is more favorable than Science Applications International.

Summary

Science Applications International beats Verra Mobility on 9 of the 14 factors compared between the two stocks.

About Verra Mobility

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Australia, Canada, and Europe. It operates through three segments: Commercial Services, Government Solutions, and Parking Solutions. The Commercial Services segment provides automated toll and violations management, and title and registration services to rental car companies, fleet management companies, and other large fleet owners. The Government Solutions segment offers automated safety solutions to national, state, and local government agencies, including services and technologies that enable photo enforcement through road safety cameras to detect and process traffic violations for red-light, speed, school bus, and city bus lanes. This segment serves municipalities, counties, school districts, and law enforcement agencies. The Parking Solutions segment provides an integrated suite of parking software and hardware solutions to universities, municipalities, parking operators, healthcare facilities, and transportation hubs. Verra Mobility Corporation was incorporated in 2016 and is headquartered in Mesa, Arizona.

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.