Convergys (CVG) versus Science Applications International (SAIC) Head to Head Analysis
Convergys (NYSE: CVG) and Science Applications International (NYSE:SAIC) are both mid-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Earnings & Valuation
This table compares Convergys and Science Applications International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Convergys||$2.79 billion||0.79||$121.40 million||$1.87||13.03|
|Science Applications International||$4.45 billion||0.82||$179.00 million||$3.53||24.39|
This is a breakdown of current ratings and recommmendations for Convergys and Science Applications International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Science Applications International||0||5||4||0||2.44|
Convergys presently has a consensus target price of $26.83, indicating a potential upside of 10.15%. Science Applications International has a consensus target price of $84.71, indicating a potential downside of 1.62%. Given Convergys’ higher possible upside, analysts plainly believe Convergys is more favorable than Science Applications International.
This table compares Convergys and Science Applications International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Science Applications International||3.95%||56.35%||8.87%|
Risk and Volatility
Convergys has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Science Applications International has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.
Insider and Institutional Ownership
63.8% of Science Applications International shares are owned by institutional investors. 1.7% of Convergys shares are owned by insiders. Comparatively, 2.1% of Science Applications International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Convergys pays an annual dividend of $0.44 per share and has a dividend yield of 1.8%. Science Applications International pays an annual dividend of $1.24 per share and has a dividend yield of 1.4%. Convergys pays out 23.5% of its earnings in the form of a dividend. Science Applications International pays out 35.1% 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. Convergys has raised its dividend for 5 consecutive years. Convergys is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Science Applications International beats Convergys on 13 of the 17 factors compared between the two stocks.
Convergys Corporation provides customer management services to communications and media, technology, financial services, retail, healthcare, government, travel and hospitality, and other vertical markets worldwide. The company offers solutions across the customer lifecycle, including sales, customer service, technical support, customer retention, and collection, as well as security, compliance, and fraud solutions; and solutions in contact center technology comprising omni-channel interaction, cross-channel integration framework, real-time decisioning engine, robotic process automation, intelligent notification, campaign management, personalized care, personalized selling, agent productivity, and retention solutions. It also provides analytics and consulting, and software solutions, such as enterprise feedback management, integrated customer experience analytics, post-contact surveys, relational loyalty research, customer segmentation and profiling, call elimination analysis, analysis of customer effort, digital channel optimization, and integrated contact center analytics solutions, as well as voice of customer software. The company operates through 140 contact centers. Convergys Corporation was founded in 1998 and is headquartered in Cincinnati, Ohio.
About Science Applications International
Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. Its offerings include engineering; technology and equipment platform integration; 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. The company serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; the U.S. Defense Logistics Agency; the National Aeronautics and Space Administration; the U.S. Department of State; and the U.S. Department of Homeland Security. 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.
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