PSN vs CACI

For growth investors, CACI International Inc (CACI) is the stronger pick with 12.

6% revenue growth year-over-year, versus -5. 7% for Parsons Corporation (PSN). CACI International Inc (CACI) offers the better valuation at 22. 0x trailing P/E (17. 4x forward), making it the more compelling value choice. Analysts rate Parsons Corporation (PSN) a "Buy" — based on 17 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, CACI International Inc (CACI) is the cheapest at 22.

0x versus Parsons Corporation at 23. 3x. On forward P/E, Parsons Corporation is actually cheaper at 15. 5x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Parsons Corporation wins at 0. 87x versus CACI International Inc's 1. 44x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, CACI International Inc (CACI) delivered a total return of +85.

4%, compared to +18. 9% for Parsons Corporation (PSN). Over 10 years, the gap is even starker: CACI returned +416. 4% versus PSN's +70. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), CACI International Inc (CACI) is the lower-risk stock at 0.

30β versus Parsons Corporation's 0. 83β — meaning PSN is approximately 178% more volatile than CACI relative to the S&P 500. On balance sheet safety, Parsons Corporation (PSN) carries a lower debt/equity ratio of 53% versus 86% for CACI International Inc — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), CACI International Inc (CACI) is pulling ahead at 12.

6% versus -5. 7% for Parsons Corporation (PSN). On earnings-per-share growth, the picture is similar: CACI International Inc grew EPS 20. 0% year-over-year, compared to 3. 8% for Parsons Corporation. Over a 3-year CAGR, PSN leads at 14. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

CACI International Inc (CACI) is the more profitable company, earning 5.

8% net margin versus 3. 8% for Parsons Corporation — meaning it keeps 5. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CACI leads at 8. 9% versus 6. 6% for PSN. At the gross margin level — before operating expenses — PSN leads at 22. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Parsons Corporation (PSN) is the more undervalued stock at a PEG of 0. 87x versus CACI International Inc's 1. 44x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Parsons Corporation (PSN) trades at 15. 5x forward P/E versus 17. 4x for CACI International Inc — 1. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PSN: 69. 4% to $86. 80.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, CACI International Inc (CACI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

30), +416. 4% 10Y return). Both have compounded well over 10 years (CACI: +416. 4%, PSN: +70. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (PSN (Industrials) and CACI (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.