Contrasting Science Applications International (NASDAQ:SAIC) and Datasea (NASDAQ:DTSS)
by Kim Johansen · The Markets DailyDatasea (NASDAQ:DTSS – Get Free Report) and Science Applications International (NASDAQ:SAIC – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.
Profitability
This table compares Datasea and Science Applications International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Datasea | -4.80% | -88.98% | -37.33% |
| Science Applications International | 5.55% | 36.96% | 10.32% |
Analyst Ratings
This is a summary of current ratings for Datasea and Science Applications International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Datasea | 1 | 0 | 0 | 0 | 1.00 |
| Science Applications International | 1 | 7 | 2 | 0 | 2.10 |
Science Applications International has a consensus price target of $114.00, suggesting a potential upside of 3.36%. Given Science Applications International’s stronger consensus rating and higher possible upside, analysts clearly believe Science Applications International is more favorable than Datasea.
Institutional and Insider Ownership
82.1% of Datasea shares are held by institutional investors. Comparatively, 76.0% of Science Applications International shares are held by institutional investors. 50.7% of Datasea shares are held by company insiders. Comparatively, 0.4% of Science Applications International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Datasea and Science Applications International”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Datasea | $71.62 million | 0.11 | -$5.09 million | ($0.32) | -2.35 |
| Science Applications International | $7.26 billion | 0.64 | $358.00 million | $8.88 | 12.42 |
Science Applications International has higher revenue and earnings than Datasea. Datasea is trading at a lower price-to-earnings ratio than Science Applications International, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Datasea has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Science Applications International has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.
Summary
Science Applications International beats Datasea on 11 of the 14 factors compared between the two stocks.
About Datasea
Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.
About Science Applications International
Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company’s offerings include engineering; technology integration; IT modernization; 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, as well as cloud migration, managed services, infrastructure modernization, and enterprise IT-as-a-service solutions. It serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; Department of Defense agencies; National Aeronautics and Space Administration; the U.S. Department of State; Department of Justice; Department of Homeland Security; and various intelligence community agencies, as well as U.S. federal civilian agencies. 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.