Reviewing Science Applications International Corporation (SAIC) & AgroFresh Solutions (AGFS)

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

Risk & Volatility

Science Applications International Corporation has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, AgroFresh Solutions has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Science Applications International Corporation and AgroFresh Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Science Applications International Corporation 0 5 2 0 2.29
AgroFresh Solutions 0 1 0 0 2.00

Science Applications International Corporation currently has a consensus price target of $79.29, suggesting a potential upside of 27.53%. AgroFresh Solutions has a consensus price target of $8.00, suggesting a potential upside of 10.80%. Given Science Applications International Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Science Applications International Corporation is more favorable than AgroFresh Solutions.

Profitability

This table compares Science Applications International Corporation and AgroFresh Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Science Applications International Corporation 3.77% 48.69% 8.12%
AgroFresh Solutions -43.81% -0.22% -0.08%

Earnings and Valuation

This table compares Science Applications International Corporation and AgroFresh Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Science Applications International Corporation $4.34 billion 0.63 $318.00 million $3.58 17.37
AgroFresh Solutions $161.99 million 2.24 $67.33 million ($1.44) -5.01

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

Dividends

Science Applications International Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 2.0%. AgroFresh Solutions does not pay a dividend. Science Applications International Corporation pays out 34.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

63.8% of Science Applications International Corporation shares are held by institutional investors. Comparatively, 71.7% of AgroFresh Solutions shares are held by institutional investors. 2.3% of Science Applications International Corporation shares are held by insiders. Comparatively, 19.4% of AgroFresh Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Science Applications International Corporation beats AgroFresh Solutions on 11 of the 15 factors compared between the two stocks.

About Science Applications International Corporation

Science Applications International Corporation (SAIC) is a provider of technical, engineering and enterprise information technology (IT) services. The Company provides its services primarily to the United States Government, including the Department of Defense (DoD), the intelligence community and federal civilian agencies. The Company provides engineering, systems integration and information technology offerings for government projects, and offers a range of services with a targeted emphasis on higher-end, differentiated technology services. The Company’s 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 spanning the design, development, integration, deployment, management and operations, sustainment and security of its customers’ entire IT infrastructure.

About AgroFresh Solutions

AgroFresh Solutions, Inc., formerly Boulevard Acquisition Corp., is a developer of agricultural technologies that preserve the freshness and value of fresh produce, including apples, pears, kiwifruit, avocados and bananas, as well as flowers. The Company’s principal product, The SmartFresh Quality System (SmartFresh), regulates the post-harvest ripening effects of ethylene, the naturally occurring plant hormone that triggers ripening in certain fruits and vegetables, through technology. SmartFresh is naturally biodegradable and leaves no detectable residue, which has significant consumer appeal. SmartFresh allows growers and packers to deliver just harvested freshness on a year-round basis. An integral part of the SmartFresh sales process is the AgroFresh Whole Product offering, which is a direct service model that provides customers with on-site applications of SmartFresh at their storage facilities combined with advisory services. The Company operates in approximately 40 countries.

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