Contrasting Science Applications International (NASDAQ:SAIC) & FTI Consulting (NYSE:FCN)

Science Applications International (NASDAQ:SAIC) and FTI Consulting (NYSE:FCN) are both mid-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Risk & Volatility

Science Applications International has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, FTI Consulting has a beta of -0.05, indicating that its share price is 105% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Science Applications International	5.55%	36.96%	10.32%
FTI Consulting	6.44%	15.91%	7.35%

Valuation and Earnings

This table compares Science Applications International and FTI Consulting”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Science Applications International	$7.26 billion	0.75	$358.00 million	$8.88	14.42
FTI Consulting	$3.79 billion	1.13	$270.87 million	$8.27	18.81

Science Applications International has higher revenue and earnings than FTI Consulting. Science Applications International is trading at a lower price-to-earnings ratio than FTI Consulting, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Science Applications International and FTI Consulting, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Science Applications International	1	8	2	0	2.09
FTI Consulting	0	2	0	0	2.00

Science Applications International currently has a consensus price target of $116.89, suggesting a potential downside of 8.74%. FTI Consulting has a consensus price target of $174.50, suggesting a potential upside of 12.18%. Given FTI Consulting’s higher possible upside, analysts plainly believe FTI Consulting is more favorable than Science Applications International.

Institutional & Insider Ownership

76.0% of Science Applications International shares are owned by institutional investors. Comparatively, 99.4% of FTI Consulting shares are owned by institutional investors. 0.7% of Science Applications International shares are owned by company insiders. Comparatively, 1.8% of FTI Consulting shares are owned 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.

Summary

Science Applications International beats FTI Consulting on 8 of the 14 factors compared between the two stocks.

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.

About FTI Consulting

FTI Consulting, Inc. provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide. The company operates through Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications segments. The Corporate Finance & Restructuring segment provides business transformation and strategy, transactions, and turnaround and restructuring services. The Forensic and Litigation Consulting segment offers construction and environmental solutions, data and analytics, disputes, health solutions, and risk and investigation services. The Economic Consulting segment provides antitrust and competition economics, financial economics, and international arbitration services. The Technology segment offers corporate legal department consulting; e-discovery and expertise; and information governance, privacy, and security services. The Strategic Communications segment provides corporate reputation, financial communications, and public affairs services. It serves aerospace and defense, airlines and aviation, blockchain and digital assets, chemicals, construction and environmental solutions, energy, financial services, food and agriculture, healthcare and life sciences, hospitality, gaming and leisure, automotive and industrial, insurance, mining, private equity, power and renewable, public sector and government contracts, real estate, retail and consumer products, telecom, media and technology, and transportation and logistics sectors. FTI Consulting, Inc. was incorporated in 1982 and is headquartered in Washington, the District of Columbia.