In the dynamic landscape of industrial and technological development, Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY) stand out as key players. Both companies operate in sectors that are increasingly intertwined, focusing on advanced solutions for defense, intelligence, and critical infrastructure. Their innovative strategies and market overlaps make them compelling subjects for comparison. In this article, I will help you determine which of these two companies presents the most intriguing investment opportunity.
Table of contents
Company Overview
Parsons Corporation Overview
Parsons Corporation (PSN) is a prominent player in the defense, intelligence, and critical infrastructure sectors. Established in 1944 and headquartered in Centreville, Virginia, Parsons focuses on providing integrated solutions that encompass cybersecurity, geospatial intelligence, and missile defense systems. With a market cap of approximately $9B, the company serves various government entities, including the U.S. Department of Defense and intelligence agencies. Parsons operates through two main segments: Federal Solutions and Critical Infrastructure, delivering services that range from cyber operations to smart city technologies. The firm has positioned itself as a leader in tackling complex challenges in both domestic and international markets.
Teledyne Technologies Incorporated Overview
Teledyne Technologies (TDY), founded in 1960 and based in Thousand Oaks, California, specializes in enabling technologies for industrial growth markets. With a market cap of around $23B, Teledyne operates across several segments, including Instrumentation, Digital Imaging, Aerospace and Defense Electronics, and Engineered Systems. The company provides a diverse range of products, from monitoring instruments and digital cameras to defense electronics and energy systems. Teledyne’s innovative solutions cater to various sectors, including marine, environmental, medical, and aerospace, showcasing its commitment to advancing technology for critical applications.
Key similarities and differences
Both Parsons and Teledyne are deeply rooted in technology and serve governmental and industrial clients. However, Parsons emphasizes defense and infrastructure solutions, while Teledyne focuses on instrumentation and imaging technologies across various sectors. Their strategic approaches reflect distinct market niches, with Parsons leaning towards cybersecurity and critical infrastructure, and Teledyne towards advanced imaging and electronic systems.
Income Statement Comparison
In this section, I will present a comparative analysis of the most recent income statements for Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY) to understand their financial performance.
| Metric | Parsons Corporation (PSN) | Teledyne Technologies Incorporated (TDY) |
|---|---|---|
| Market Cap | 9.04B | 23.45B |
| Revenue | 6.75B | 5.67B |
| EBITDA | 518M | 1.31B |
| EBIT | 419M | 996M |
| Net Income | 235M | 819M |
| EPS | 2.21 | 17.43 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
Analyzing the income statements, Parsons Corporation showed significant revenue growth from 5.44B in 2023 to 6.75B in 2024, alongside a net income increase from 161M to 235M. In contrast, Teledyne Technologies, while also showing revenue growth from 5.64B to 5.67B, experienced a more moderate net income increase from 886M to 819M, indicating potential pressure on margins. Parsons’ EBITDA margin improved, suggesting enhanced operational efficiency, while Teledyne’s margins remained stable despite its larger revenue base. Overall, Parsons appears to be gaining momentum, whereas Teledyne’s growth may be stabilizing.
Financial Ratios Comparison
In this section, I provide a comparative overview of key financial metrics between Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY) for the most recent fiscal year.
| Metric | [Company A: PSN] | [Company B: TDY] |
|---|---|---|
| ROE | 9.73% | 8.58% |
| ROIC | 8.28% | 6.67% |
| P/E | 41.72 | 26.53 |
| P/B | 4.06 | 2.29 |
| Current Ratio | 1.29 | 2.33 |
| Quick Ratio | 1.29 | 1.61 |
| D/E | 0.59 | 0.29 |
| Debt-to-Assets | 25.89% | 22.34% |
| Interest Coverage | 8.30 | 17.08 |
| Asset Turnover | 1.23 | 0.39 |
| Fixed Asset Turnover | 25.51 | 7.61 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
Comparing these metrics, I observe that both companies exhibit strong financial health, but PSN shows superior performance in ROE and asset efficiency. Notably, the higher P/E ratio for PSN indicates market expectations for growth but may also suggest overvaluation risks. Conversely, TDY’s lower debt levels and higher interest coverage reflect robust financial stability. Investors should weigh the growth potential against risks associated with PSN’s higher valuation.
Dividend and Shareholder Returns
Both Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY) do not pay dividends. This decision is likely driven by their current reinvestment strategies aimed at fostering growth and innovation, particularly during their high-growth phases. However, both companies engage in share buybacks, which can signal confidence in their future prospects and provide value to shareholders. In assessing long-term shareholder value creation, their approaches suggest a focus on capital appreciation over immediate income, aligning with sustainable growth strategies.
Strategic Positioning
Parsons Corporation (PSN) holds a market cap of approximately $9B, focusing on defense and critical infrastructure solutions, whereas Teledyne Technologies (TDY), with a market cap near $23B, excels in instrumentation and aerospace sectors. Both face competitive pressure from emerging tech firms and traditional players. Technological disruption is evident, with advancements in cyber security and digital imaging reshaping their respective markets. As I analyze these dynamics, I emphasize prudent risk management for potential investors.
Stock Comparison
In this section, I will examine the weekly stock price movements of Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY) over the past year, focusing on significant price changes and trading dynamics that have shaped investor sentiment.
Trend Analysis
Parsons Corporation (PSN) Over the past year, PSN has exhibited a price change of +37.33%, indicating a bullish trend. The stock has shown acceleration in its upward movement, with notable highs reaching 112.69 and lows at 58.22. The standard deviation of 12.88 suggests a moderate level of volatility in its price movements. Recently, from September 14, 2025, to November 30, 2025, PSN recorded a further price increase of +10.52%, maintaining a positive trend.
Teledyne Technologies Incorporated (TDY) For TDY, the overall price change stands at +14.71%, which also reflects a bullish trend. However, the acceleration status indicates a deceleration in growth. The highest price noted was 587.62, while the lowest was 374.64, with a significant standard deviation of 53.48, highlighting considerable volatility. In the recent period from September 14, 2025, to November 30, 2025, TDY experienced a price decline of -10.21%, suggesting caution for potential investors.
In summary, while both stocks are on a bullish trajectory overall, PSN shows stronger momentum with positive recent trends, whereas TDY is experiencing a downturn that necessitates careful observation.
Analyst Opinions
Recent recommendations for Parsons Corporation (PSN) indicate a strong “Buy” rating, with analysts praising its solid discounted cash flow and return on assets scores. The overall rating stands at A-, reflecting confidence in its growth potential. In contrast, Teledyne Technologies Incorporated (TDY) has garnered a “Hold” rating, with a B+ overall score. Analysts express caution regarding its return on equity and price-to-earnings metrics. The consensus for 2025 is a “Buy” for PSN and a “Hold” for TDY, suggesting a more favorable outlook for Parsons.
Stock Grades
As we evaluate the latest stock grades for Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY), we can see the ongoing sentiment from reliable grading firms.
Parsons Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| William Blair | upgrade | Outperform | 2025-11-20 |
| Keybanc | maintain | Overweight | 2025-10-20 |
| Truist Securities | maintain | Buy | 2025-09-30 |
| Keybanc | maintain | Overweight | 2025-09-29 |
| Baird | maintain | Outperform | 2025-09-17 |
| Goldman Sachs | downgrade | Neutral | 2025-08-13 |
| Keybanc | maintain | Overweight | 2025-08-07 |
| Baird | upgrade | Outperform | 2025-08-07 |
| Truist Securities | maintain | Buy | 2025-07-24 |
| Keybanc | maintain | Overweight | 2025-07-16 |
Teledyne Technologies Incorporated Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | maintain | Buy | 2025-10-23 |
| Barclays | maintain | Equal Weight | 2025-10-23 |
| Stifel | maintain | Buy | 2025-10-23 |
| Morgan Stanley | maintain | Equal Weight | 2025-10-15 |
| UBS | maintain | Buy | 2025-07-24 |
| Needham | maintain | Buy | 2025-07-23 |
| Morgan Stanley | maintain | Equal Weight | 2025-07-17 |
| Needham | maintain | Buy | 2025-04-24 |
| TD Securities | maintain | Buy | 2025-04-24 |
| B of A Securities | maintain | Buy | 2025-03-17 |
Overall, the trend for both companies displays a mix of upgrades and consistent maintenance of grades. Parsons Corporation has recently been upgraded to “Outperform,” indicating a positive outlook, while Teledyne Technologies maintains a strong “Buy” rating across several firms, reflecting solid investor confidence.
Target Prices
The current consensus target prices for Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY) reflect positive outlooks from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Parsons Corporation (PSN) | 107 | 90 | 95.5 |
| Teledyne Technologies (TDY) | 645 | 584 | 616 |
Analysts expect PSN to have a target consensus of 95.5, suggesting an upside potential from the current price of 84.68. For TDY, the consensus target of 616 indicates a favorable outlook compared to its current price of 499.52.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of two companies: Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY).
| Criterion | Parsons Corporation (PSN) | Teledyne Technologies (TDY) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Net profit margin: 3.5% | Net profit margin: 14.4% |
| Innovation | Moderate | High |
| Global presence | Moderate | High |
| Market Share | Low | Moderate |
| Debt level | Moderate (Debt/Equity: 0.59) | Low (Debt/Equity: 0.29) |
Key takeaways: Teledyne Technologies demonstrates stronger profitability and innovation with a robust global presence. In contrast, Parsons Corporation has moderate diversification and a higher debt level, indicating potential risk.
Risk Analysis
In the table below, I outline the key risks associated with Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY) for the most recent year.
| Metric | Parsons Corporation (PSN) | Teledyne Technologies (TDY) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | High | Moderate |
| Operational Risk | Moderate | Moderate |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | High | Moderate |
In summary, both companies face significant regulatory and geopolitical risks, especially Parsons Corporation, given its involvement in defense and infrastructure. These risks could impact their operational stability and market performance.
Which one to choose?
When comparing Parsons Corporation (PSN) and Teledyne Technologies (TDY), Parsons appears to have stronger fundamentals. PSN boasts a higher gross profit margin of 20.8% and a net profit margin of 3.5%, compared to TDY’s 42.9% and 14.4%, respectively. In terms of valuation, PSN’s price-to-earnings ratio stands at 41.7, while TDY is more attractively priced at 26.5. Analysts have rated PSN with an A- while TDY received a B+, indicating a favorable outlook for Parsons.
For growth-focused investors, PSN might be more appealing due to its bullish stock trend and recent price increases of 37.3%. Conversely, TDY may attract those seeking stability with its solid net income and established market presence.
However, both companies face risks including market dependence and competition in their respective industries.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Parsons Corporation and Teledyne Technologies Incorporated to enhance your investment decisions:
