Head-To-Head Analysis: Science Applications International (NASDAQ:SAIC) vs. Serve Robotics (NASDAQ:SERV)

Serve Robotics (NASDAQ:SERV) and Science Applications International (NASDAQ:SAIC) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Insider & Institutional Ownership

76.0% of Science Applications International shares are held by institutional investors. 21.4% of Serve Robotics 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 stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Serve Robotics	-3,821.98%	-38.54%	-36.93%
Science Applications International	5.05%	33.19%	9.62%

Earnings and Valuation

This table compares Serve Robotics and Science Applications International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Serve Robotics	$2.65 million	274.67	-$101.36 million	($1.59)	-6.05
Science Applications International	$7.35 billion	0.58	$362.00 million	$7.69	12.30

Science Applications International has higher revenue and earnings than Serve Robotics. Serve Robotics 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.

Analyst Ratings

This is a breakdown of current ratings for Serve Robotics and Science Applications International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Serve Robotics	1	0	5	2	3.00
Science Applications International	1	7	3	0	2.18

Serve Robotics currently has a consensus target price of $18.60, indicating a potential upside of 93.35%. Science Applications International has a consensus target price of $113.89, indicating a potential upside of 20.42%. Given Serve Robotics’ stronger consensus rating and higher probable upside, equities analysts plainly believe Serve Robotics is more favorable than Science Applications International.

Risk and Volatility

Serve Robotics has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Science Applications International has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.

Summary

Science Applications International beats Serve Robotics on 8 of the 15 factors compared between the two stocks.

About Serve Robotics

Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc. in July 2023. Serve Robotics Inc. was founded in 2017 and is based in Redwood City, California.

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.