Head-To-Head Survey: Waystar (NASDAQ:WAY) & Parsons (NYSE:PSN)

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

Earnings & Valuation

This table compares Parsons and Waystar”s top-line revenue, earnings per share and valuation.

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

Parsons has higher revenue and earnings than Waystar.

Analyst Ratings

This is a summary of current recommendations and price targets for Parsons and Waystar, as reported by MarketBeat.com.

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

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

Insider and Institutional Ownership

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

Profitability

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

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

Summary

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

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.

About Waystar

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