Vertiv (NYSE:VRT) & Science Applications International (NASDAQ:SAIC) Head-To-Head Analysis

Vertiv (NYSE:VRT) and Science Applications International (NASDAQ:SAIC) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Dividends

Vertiv pays an annual dividend of $0.25 per share and has a dividend yield of 0.1%. Science Applications International pays an annual dividend of $1.48 per share and has a dividend yield of 1.4%. Vertiv pays out 6.3% of its earnings in the form of a dividend. Science Applications International pays out 19.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Vertiv has increased its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Vertiv and Science Applications International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertiv	$10.23 billion	11.80	$1.33 billion	$3.98	78.97
Science Applications International	$7.26 billion	0.62	$358.00 million	$7.69	13.49

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vertiv	14.37%	49.90%	15.79%
Science Applications International	4.93%	33.15%	9.44%

Risk and Volatility

Vertiv has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, Science Applications International has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Institutional and Insider Ownership

89.9% of Vertiv shares are held by institutional investors. Comparatively, 76.0% of Science Applications International shares are held by institutional investors. 1.1% of Vertiv shares are held by company insiders. Comparatively, 0.4% of Science Applications International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Vertiv and Science Applications International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertiv	1	3	22	2	2.89
Science Applications International	1	8	3	0	2.17

Vertiv presently has a consensus price target of $322.32, indicating a potential upside of 2.55%. Science Applications International has a consensus price target of $109.20, indicating a potential upside of 5.30%. Given Science Applications International’s higher possible upside, analysts plainly believe Science Applications International is more favorable than Vertiv.

Summary

Vertiv beats Science Applications International on 15 of the 18 factors compared between the two stocks.

About Vertiv

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.

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.