PSN vs J

For growth investors, Jacobs Solutions Inc.

(J) is the stronger pick with 4. 6% revenue growth year-over-year, versus -5. 7% for Parsons Corporation (PSN). Parsons Corporation (PSN) offers the better valuation at 23. 3x trailing P/E (15. 5x 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, Parsons Corporation (PSN) is the cheapest at 23.

3x versus Jacobs Solutions Inc. at 51. 5x. On forward P/E, Parsons Corporation is actually cheaper at 15. 5x.

Over the past 5 years, Parsons Corporation (PSN) delivered a total return of +18.

9%, compared to -15. 1% for Jacobs Solutions Inc. (J). Over 10 years, the gap is even starker: PSN returned +70. 4% versus J's -13. 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), Parsons Corporation (PSN) is the lower-risk stock at 0.

83β versus Jacobs Solutions Inc. 's 1. 22β — meaning J is approximately 48% more volatile than PSN relative to the S&P 500. On balance sheet safety, Parsons Corporation (PSN) carries a lower debt/equity ratio of 53% versus 58% for Jacobs Solutions Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Jacobs Solutions Inc.

(J) is pulling ahead at 4. 6% versus -5. 7% for Parsons Corporation (PSN). On earnings-per-share growth, the picture is similar: Parsons Corporation grew EPS 3. 8% year-over-year, compared to -62. 3% for Jacobs Solutions Inc.. 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.

Parsons Corporation (PSN) is the more profitable company, earning 3.

8% net margin versus 2. 4% for Jacobs Solutions Inc. — meaning it keeps 3. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: J leads at 7. 2% versus 6. 6% for PSN. At the gross margin level — before operating expenses — J leads at 24. 8%, 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.

On forward earnings alone, Parsons Corporation (PSN) trades at 15.

5x forward P/E versus 17. 2x for Jacobs Solutions Inc. — 1. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PSN: 69. 4% to $86. 80.

In this comparison, J (1.

0% yield) pays a dividend. PSN does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Jacobs Solutions Inc.

(J) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 22), 1. 0% yield). Both have compounded well over 10 years (J: -13. 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.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

J pays a dividend while PSN does not, making them suitable for different income and tax situations. 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.