Contrasting Waystar (NASDAQ:WAY) and Parsons (NYSE:PSN)

Waystar (NASDAQ:WAY) and Parsons (NYSE:PSN) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waystar	$943.55 million	8.00	-$51.33 million	N/A	N/A
Parsons	$5.44 billion	1.27	$161.15 million	$0.66	98.49

Parsons has higher revenue and earnings than Waystar.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Waystar	N/A	N/A	N/A
Parsons	1.21%	12.74%	5.79%

Insider & Institutional Ownership

98.0% of Parsons shares are held by institutional investors. 56.0% of Parsons shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Waystar and Parsons, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waystar	0	0	11	1	3.08
Parsons	0	1	9	0	2.90

Waystar presently has a consensus target price of $39.64, suggesting a potential downside of 9.63%. Parsons has a consensus target price of $107.33, suggesting a potential upside of 65.12%. Given Parsons’ higher probable upside, analysts clearly believe Parsons is more favorable than Waystar.

Summary

Parsons beats Waystar on 8 of the 12 factors compared between the two stocks.

About Waystar

Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.

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.