Comparing Aeries Technology (NASDAQ:AERT) and Parsons (NYSE:PSN)

Aeries Technology (NASDAQ:AERT) and Parsons (NYSE:PSN) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

99.2% of Aeries Technology shares are owned by institutional investors. Comparatively, 98.0% of Parsons shares are owned by institutional investors. 63.6% of Aeries Technology shares are owned by company insiders. Comparatively, 1.3% of Parsons shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Aeries Technology and Parsons”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aeries Technology	$69.20 million	0.61	-$19.71 million	($0.07)	-11.97
Parsons	$6.30 billion	1.03	$241.14 million	$2.09	29.06

Parsons has higher revenue and earnings than Aeries Technology. Aeries Technology is trading at a lower price-to-earnings ratio than Parsons, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Aeries Technology and Parsons, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aeries Technology	1	0	0	0	1.00
Parsons	0	6	9	0	2.60

Parsons has a consensus target price of $76.92, indicating a potential upside of 26.63%. Given Parsons’ stronger consensus rating and higher possible upside, analysts plainly believe Parsons is more favorable than Aeries Technology.

Profitability

This table compares Aeries Technology and Parsons’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aeries Technology	-4.23%	N/A	-7.27%
Parsons	3.62%	11.52%	5.36%

Risk & Volatility

Aeries Technology has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Parsons has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Summary

Parsons beats Aeries Technology on 11 of the 14 factors compared between the two stocks.

About Aeries Technology

Aeries Technology, Inc. operates as a professional services and consulting partner in the North America, Asia Pacific, and internationally. The company offers management consultancy services for private equity sponsors and their portfolio companies, including software solutions, product management, IT infrastructure, information and cyber security, ERP and CRM platform management, business process management, and digital transformation services. The company was founded in 2012 and is headquartered in Singapore.

About Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.