Parsons (NYSE:PSN) and Samsara (NYSE:IOT) Critical Analysis

Samsara (NYSE:IOTGet Free Report) and Parsons (NYSE:PSNGet Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Samsara and Parsons, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Samsara 0 5 4 0 2.44
Parsons 0 1 9 0 2.90

Samsara currently has a consensus price target of $31.56, indicating a potential downside of 14.90%. Parsons has a consensus price target of $73.22, indicating a potential downside of 11.03%. Given Parsons’ stronger consensus rating and higher possible upside, analysts clearly believe Parsons is more favorable than Samsara.

Profitability

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

Net Margins Return on Equity Return on Assets
Samsara -30.59% -22.77% -12.99%
Parsons 2.96% 10.32% 5.04%

Volatility & Risk

Samsara has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Parsons has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Valuation & Earnings

This table compares Samsara and Parsons’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Samsara $937.39 million 21.37 -$286.73 million ($0.53) -69.96
Parsons $5.44 billion 1.60 $161.15 million $1.42 57.96

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

Insider and Institutional Ownership

52.5% of Samsara shares are owned by institutional investors. Comparatively, 98.2% of Parsons shares are owned by institutional investors. 66.1% of Samsara shares are owned by company insiders. Comparatively, 56.0% of Parsons shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Parsons beats Samsara on 11 of the 14 factors compared between the two stocks.

About Samsara

(Get Free Report)

Samsara Inc. provides solutions that connect physical operations data to its Connected Operations Cloud in the United States and internationally. The company's Connected Operations Cloud includes Data Platform, which ingests, aggregates, and enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy; and applications for video-based safety, vehicle telematics, apps and driver workflows, equipment monitoring, and site visibility. It serves transportation, wholesale and retail trade, construction, field services, logistics, utilities and energy, healthcare and education, manufacturing, food and beverage, and other industries, as well as government. The company was incorporated in 2015 and is based in San Francisco, California.

About Parsons

(Get Free Report)

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.

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