Analyzing SS&C Technologies (NASDAQ:SSNC) & Parsons (NYSE:PSN)

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

Institutional and Insider Ownership

98.0% of Parsons shares are owned by institutional investors. Comparatively, 96.9% of SS&C Technologies shares are owned by institutional investors. 1.3% of Parsons shares are owned by insiders. Comparatively, 16.0% of SS&C Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Parsons has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, SS&C Technologies has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Profitability

This table compares Parsons and SS&C Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parsons	2.50%	8.10%	3.75%
SS&C Technologies	13.16%	21.20%	7.19%

Valuation and Earnings

This table compares Parsons and SS&C Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parsons	$6.36 billion	0.71	$241.14 million	$1.45	29.12
SS&C Technologies	$6.27 billion	2.96	$796.90 million	$3.48	22.72

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Parsons and SS&C Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parsons	2	3	11	0	2.56
SS&C Technologies	0	2	7	1	2.90

Parsons presently has a consensus price target of $64.08, indicating a potential upside of 51.78%. SS&C Technologies has a consensus price target of $92.62, indicating a potential upside of 17.13%. Given Parsons’ higher probable upside, equities analysts plainly believe Parsons is more favorable than SS&C Technologies.

Summary

SS&C Technologies beats Parsons on 10 of the 15 factors compared between the two stocks.

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.

About SS&C Technologies

SS&C Technologies Holdings, Inc. engages in the development and provision of software solutions to the financial services and healthcare industries. It operates through the following geographical segments: United States, Europe, Middle East and Africa, Asia Pacific and Japan, Canada, and the Americas, excluding the United States and Canada. Its products include advent genesis, antares, asset allocators, AWD, axys, BANC mall, BRIX, DST vision, evare, lightning, and moxy. The company was founded by William Charles Stone in March 1986 and is headquartered in Windsor, CT.