Parsons (NYSE:PSN) versus Verint Systems (NYSE:VRNT) Critical Comparison

Parsons (NYSE:PSN) and Verint Systems (NASDAQ:VRNT) are both mid-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Earnings & Valuation

This table compares Parsons and Verint Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Parsons $3.56 billion 1.05 $222.34 million N/A N/A
Verint Systems $1.23 billion 2.95 $65.99 million $2.32 23.75

Parsons has higher revenue and earnings than Verint Systems.

Profitability

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

Net Margins Return on Equity Return on Assets
Parsons N/A N/A N/A
Verint Systems 5.56% 13.60% 5.98%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Parsons and Verint Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Parsons 0 3 4 0 2.57
Verint Systems 0 0 6 0 3.00

Parsons currently has a consensus price target of $37.33, suggesting a potential downside of 0.89%. Verint Systems has a consensus price target of $67.83, suggesting a potential upside of 23.13%. Given Verint Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Verint Systems is more favorable than Parsons.

Institutional & Insider Ownership

95.6% of Verint Systems shares are held by institutional investors. 1.4% of Verint Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Verint Systems beats Parsons on 9 of the 11 factors compared between the two stocks.

About Parsons

Parsons Corporation provides technology based solutions in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. It operates in two segments, Federal Solutions and Critical Infrastructure. The company offers cybersecurity software and engineering services, hardware prototyping, and other technical services to the U.S. Army and the United States intelligence community; ThunderRidge, a tool that assists cyber operational users to develop action plans, assess cyber threats, and disseminate situational awareness in real-time; and geospatial intelligence, big data analytics, and threat mitigation technology services to the defense, intelligence, space and command, control, communications, computer, cyber, intelligence, surveillance, and reconnaissance. It also provides mission planning for space situational awareness, small satellite systems integration, electronic warfare, directed energy modeling and simulation, and command and control systems and support to the Missile Defense Agency, the U.S. Air Force, and the U.S. Army; converged cyber-physical solutions for critical infrastructure, and global military mission readiness and training services to the Federal Aviation Administration and the U.S. Army; and technology services for advanced energy production systems, healthcare systems, environmental systems, and related infrastructure. In addition, the company offers intelligent transportation system management, train controls integration, smart cities software, and critical infrastructure cyber protection to the transportation authorities, rail, and transit entities; engineering services for complex infrastructure, including bridges and tunnels, roads and highways, airports, and rail and transit; and engineering, program management, and environmental solutions to private-sector industrial clients and public utilities. Parsons Corporation was founded in 1944 and is headquartered in Centreville, Virginia.

About Verint Systems

Verint Systems Inc. provides actionable intelligence solutions worldwide. The company's Customer Engagement Solutions segment offers automated quality management, automated verification, branch surveillance and investigation, case management, chat engagement, coaching/learning, compliance recording, customer communities, desktop and process analytics, and digital feedback solutions. It also provides email engagement, employee desktop, enterprise feedback, financial compliance, full-time recording, gamification, identity and interaction analytics, internal communities, knowledge management, mobile workforce, performance management, robotic process automation, social analytics, speech transcription, speech and text analytics, virtual assistant, voice self-service, voice self-service fraud detection, Web/mobile self-service, work manager, and workforce management solutions. The company's Cyber Intelligence Solutions segment offers cyber security solutions; and intelligence fusion center and Web and social intelligence software that enables collection, fusion, and analysis of data from the Web. It also provides network intelligence suite, which enables security organizations generate critical intelligence from various network, and internal and external open sources; and situational intelligence software that enables security organizations to fuse, analyze, and report information, as well as take action on risks, alarms, and incidents. The company also offers a range of customer services, including implementation and training, consulting, managed, and maintenance and support services. It sells its solutions through its direct sales team; and through indirect channels, such as distributors, systems integrators, value-added resellers, and original equipment manufacturer partners. Verint Systems Inc. was founded in 1994 and is headquartered in Melville, New York.

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