Critical Contrast: TIC Solutions (NYSE:TIC) and Science Applications International (NASDAQ:SAIC)

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

Institutional & Insider Ownership

76.0% of Science Applications International shares are held by institutional investors. 11.4% of TIC Solutions shares are held by insiders. Comparatively, 0.7% of Science Applications International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for TIC Solutions and Science Applications International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TIC Solutions	1	2	3	0	2.33
Science Applications International	1	8	2	0	2.09

TIC Solutions presently has a consensus price target of $12.00, indicating a potential upside of 38.50%. Science Applications International has a consensus price target of $125.22, indicating a potential downside of 4.82%. Given TIC Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe TIC Solutions is more favorable than Science Applications International.

Volatility & Risk

TIC Solutions has a beta of 3, suggesting that its share price is 200% more volatile than the S&P 500. Comparatively, Science Applications International has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Valuation & Earnings

This table compares TIC Solutions and Science Applications International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TIC Solutions	$2.05 billion	0.92	-$87.12 million	($0.58)	-14.94
Science Applications International	$7.40 billion	0.74	$358.00 million	$8.55	15.39

Science Applications International has higher revenue and earnings than TIC Solutions. TIC Solutions 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TIC Solutions	-5.64%	-2.30%	-1.11%
Science Applications International	5.13%	34.68%	9.45%

Summary

Science Applications International beats TIC Solutions on 8 of the 14 factors compared between the two stocks.

About TIC Solutions

Acuren Corporation provides critical asset integrity services in North America. Its activities include various nondestructive testing (NDT) solutions, such as radiography, ultrasonic testing, magnetic particle inspection, penetrant testing, and visual inspection. Its NDT activities include inspection and evaluation of industrial equipment through various technology-enabled methods to ensure asset integrity, avoid accidents, and comply with regulatory requirements without destroying the asset or component. The company also provides market rope access technician solutions, including inspection and testing, as well as insulation, coatings and blasting, welding, pipe fitting, hoisting and rigging, and electrical services. In addition, its TIC service includes support from consulting engineers with in-lab destructive testing capabilities. The company provides support failure investigation, material selection, corrosion engineering, welding engineering, fracture mechanics, destructive testing, and chemical analysis. It serves a range of industrial markets, primarily chemical, pipeline, refinery, power generation, oilsands, automotive, aerospace, mining, manufacturing, renewable energy, and pulp and paper. The company was founded in 1991 and is headquartered in Tomball, Texas.

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.