Science Applications International Corporation (SAIC) versus Datalink (NASDAQ:DTLK) Critical Comparison

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

Institutional & Insider Ownership

68.4% of Science Applications International Corporation shares are owned by institutional investors. Comparatively, 73.8% of Datalink shares are owned by institutional investors. 2.3% of Science Applications International Corporation shares are owned by company insiders. Comparatively, 11.9% of Datalink shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Science Applications International Corporation and Datalink, as reported by MarketBeat.

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

Science Applications International Corporation currently has a consensus target price of $81.14, suggesting a potential upside of 17.09%. Datalink has a consensus target price of $11.25, suggesting a potential upside of 0.09%. Given Science Applications International Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Science Applications International Corporation is more favorable than Datalink.

Dividends

Science Applications International Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 1.8%. Datalink does not pay a dividend. Science Applications International Corporation pays out 34.5% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Science Applications International Corporation 3.78% 47.08% 8.02%
Datalink 0.30% 1.32% 0.44%

Valuation & Earnings

This table compares Science Applications International Corporation and Datalink’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Science Applications International Corporation $4.34 billion 0.70 $318.00 million $3.59 19.30
Datalink N/A N/A N/A $0.31 36.26

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

Risk and Volatility

Science Applications International Corporation has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Datalink has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Summary

Science Applications International Corporation beats Datalink on 10 of the 13 factors compared between the two stocks.

Science Applications International Corporation Company Profile

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.

Datalink Company Profile

Datalink Corporation is a provider of information technology (IT) services and solutions. The Company provides a full life cycle of services, including consulting, strategy, design, deploy, manage and support. The Company leverages technology from the original equipment manufacturers (OEMs) as part of its IT solutions portfolio. Its portfolio of solutions and services spans approximately four areas, such as cloud, data center transformation, next-generation technology and security. The Company’s cloud services provide a foundation for services delivery models, such as IT as a service (ITaaS). These services include assessment and readiness workshops, security and migration strategies, automation, orchestration, Datalink Cloud Complete, DR Testing and X (anything) As A Service (XaaS). Its data center transformation portfolio includes technical infrastructure strategy and roadmaps, cloud strategies, IT process and management, IT operational outsourcing and managed services strategies.

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