Reviewing Perspecta (NYSE:PRSP) & Computer Services (OTCMKTS:CSVI)


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Perspecta (NYSE:PRSP) and Computer Services (OTCMKTS:CSVI) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Perspecta and Computer Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perspecta 0 5 0 0 2.00
Computer Services 0 0 0 0 N/A

Perspecta currently has a consensus price target of $24.67, suggesting a potential downside of 4.87%. Given Perspecta’s higher possible upside, analysts plainly believe Perspecta is more favorable than Computer Services.

Volatility and Risk

Perspecta has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Computer Services has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Earnings & Valuation

This table compares Perspecta and Computer Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Perspecta $4.50 billion 0.93 -$676.00 million $2.05 12.65
Computer Services $284.23 million 5.96 $52.85 million N/A N/A

Computer Services has lower revenue, but higher earnings than Perspecta.

Profitability

This table compares Perspecta and Computer Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perspecta -15.76% 18.09% 5.51%
Computer Services 19.79% 22.57% 14.94%

Insider & Institutional Ownership

79.5% of Perspecta shares are owned by institutional investors. Comparatively, 0.1% of Computer Services shares are owned by institutional investors. 14.8% of Perspecta shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Perspecta pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Computer Services pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. Perspecta pays out 13.7% of its earnings in the form of a dividend. Perspecta has increased its dividend for 2 consecutive years.

Summary

Computer Services beats Perspecta on 8 of the 14 factors compared between the two stocks.

About Perspecta

Perspecta Inc. provides enterprise information technology (IT) services to government customers in the United States federal, state, and local markets. The company develops, modernizes, transforms, and manages customers' enterprise application portfolios enabling a shift of IT spend from maintenance and operations to innovation; and offers analytics and data services, as well as research, engineering, consulting, and technology solutions for government, including cybersecurity, cloud, quantum computing, network configuration, and data analytics capabilities. It also provides cybersecurity solutions that predict attacks, respond to threats, ensure compliance, and protect data, applications, and infrastructure and endpoints. In addition, the company offers cloud computing and infrastructure services that enable customers maximize their private cloud, public cloud, and legacy infrastructure to transform, optimize, and secure their hybrid environments; and digital strategy and transformation services. Further, it provides digital workplace environment to enable government organizations, including secure devices, productivity and collaboration tools, and workplace support; integrated solutions; identification and authentication validation to government organizations through investigative and risk mitigation services, as well as enables to government identify and eliminate fraud, waste, and abuse through integrated data analysis, medical claims review, and investigation services. Additionally, the company enables customers design, manage, and integrate systems throughout the project life cycle. Perspecta Inc. is headquartered in Chantilly, Virginia.

About Computer Services

Computer Services, Inc., together with its subsidiaries, provides core processing, digital banking, managed services, payments processing, print and electronic distribution, and regulatory compliance solutions to financial institutions and corporate entities in the United States. It provides processing, maintenance, and support services; software licensing and installation services; professional services; and e-business services, as well as sells equipment and supplies. The company also offers integrated banking solutions, which include mobile and Internet banking; check imaging; cash management; branch and merchant capture; print and mail, and online document delivery services; corporate intranets; secure Web hosting; e-messaging; teller and platform services; ATM and debit card service and support; payments solutions; risk assessment; network management; cloud-based managed services; and compliance software and services for regulatory compliance, homeland security, anti-money laundering, anti-terrorism financing, and fraud prevention. It serves community banks, regional banks, and multi-bank holding companies, as well as to various other business enterprises. The company was incorporated in 1965 and is headquartered in Paducah, Kentucky.

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