In today’s rapidly evolving market landscape, investors are constantly seeking opportunities in innovative companies that can drive growth and stability. In this analysis, I will compare Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY), two key players in the industrial and technology sectors, respectively. Both companies are distinguished by their commitment to providing advanced solutions in defense, infrastructure, and industrial growth markets. Join me as we uncover which of these companies presents the most compelling investment opportunity for your portfolio.
Table of contents
Company Overview
Parsons Corporation Overview
Parsons Corporation (PSN) is a leader in providing integrated solutions across defense, intelligence, and critical infrastructure sectors. Founded in 1944 and headquartered in Centreville, Virginia, Parsons specializes in cybersecurity and intelligence services, offering advanced technologies to the U.S. Department of Defense and other governmental agencies. Its dual focus on Federal Solutions and Critical Infrastructure allows Parsons to deliver a wide range of services, from missile defense systems to smart city software. With a market capitalization of $8.97B and a strong emphasis on innovation, Parsons is well-positioned to navigate the complexities of modern security and infrastructure challenges.
Teledyne Technologies Incorporated Overview
Teledyne Technologies (TDY), established in 1960 and based in Thousand Oaks, California, operates within the hardware and technology sectors, providing enabling technologies for industrial growth markets. With a market cap of $23.43B, Teledyne’s diverse offerings include instrumentation for monitoring and control, digital imaging solutions for various applications, and aerospace defense electronics. The company’s commitment to technological advancement and its expansive international presence underscore its competitive position in the market, making it a prominent player in sectors requiring precision and reliability.
Key similarities between Parsons and Teledyne include their focus on advanced technologies and solutions tailored to defense and infrastructure. However, while Parsons emphasizes cybersecurity and infrastructure services, Teledyne is more diversified in its hardware offerings, spanning various industrial applications, including imaging and electronics.
Income Statement Comparison
The following table summarizes the key financial metrics from the most recent income statements of Parsons Corporation and Teledyne Technologies Incorporated, allowing for a direct comparison of their financial performances.
| Metric | Parsons Corporation | Teledyne Technologies |
|---|---|---|
| Revenue | 6.75B | 5.67B |
| EBITDA | 518M | 1.31B |
| EBIT | 419M | 996M |
| Net Income | 235M | 819M |
| EPS | 2.21 | 17.43 |
Interpretation of Income Statement
In the most recent year, Parsons Corporation (PSN) experienced significant growth in revenue, rising from 5.44B to 6.75B, while Teledyne Technologies (TDY) demonstrated stability with a slight increase in revenue from 5.64B to 5.67B. Notably, PSN’s net income rose from 161M to 235M, reflecting improved operational efficiency. Conversely, TDY’s net income also increased from 789M to 819M, indicating consistent profitability. However, PSN’s EBITDA margin is notably lower at 7.7% compared to TDY’s 23.1%, suggesting that while PSN’s revenue growth is strong, it may face challenges in maintaining high profitability margins in the long term.
Financial Ratios Comparison
The following table compares the most recent financial ratios for Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY).
| Metric | PSN | TDY |
|---|---|---|
| ROE | 9.73% | 8.58% |
| ROIC | 8.28% | 6.67% |
| P/E | 41.72 | 26.53 |
| P/B | 4.06 | 2.28 |
| Current Ratio | 1.29 | 2.33 |
| Quick Ratio | 1.29 | 1.61 |
| D/E | 0.59 | 0.29 |
| Debt-to-Assets | 25.89% | 19.64% |
| Interest Coverage | 8.30 | 17.08 |
| Asset Turnover | 1.23 | 0.40 |
| Fixed Asset Turnover | 25.51 | 7.61 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0% | 0% |
Interpretation of Financial Ratios
Parsons Corporation exhibits a higher return on equity (ROE) and return on invested capital (ROIC) than Teledyne, indicating superior profitability and efficiency. However, PSN’s elevated price-to-earnings (P/E) and price-to-book (P/B) ratios suggest it may be overvalued relative to its earnings. Conversely, TDY benefits from a stronger current ratio, indicating better short-term liquidity. Both companies have no dividend payout, reflecting a focus on reinvestment rather than returning capital to shareholders, which could be a concern for income-focused investors.
Dividend and Shareholder Returns
Neither Parsons Corporation (PSN) nor Teledyne Technologies Incorporated (TDY) currently pays dividends, indicating a focus on reinvestment and growth strategies. PSN has maintained a robust free cash flow, which supports its operational investments and share buybacks. Similarly, TDY prioritizes R&D and acquisitions, enhancing long-term shareholder value. While both companies lack immediate cash returns, their strategies may ultimately yield sustainable value creation for shareholders in the long run.
Strategic Positioning
Parsons Corporation (PSN) and Teledyne Technologies (TDY) are key players within their respective markets, with PSN holding a market cap of $8.97B and TDY at $23.43B. PSN focuses on defense and critical infrastructure, facing competitive pressure from other firms in cyber security and intelligence services. In contrast, TDY excels in industrial technologies and digital imaging, leveraging advanced analytics and sensor technologies. Both companies must navigate technological disruptions and evolving industry standards to maintain their market positions.
Stock Comparison
In this section, I will provide an analysis of the stock price movements and trading dynamics for Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY) over the past year, highlighting significant trends and price fluctuations.
Trend Analysis
For Parsons Corporation (PSN), the stock has experienced a strong bullish trend with a price change of +36.43% over the past year. This indicates a significant upward momentum, characterized by notable acceleration. The stock reached a high of 112.69 and a low of 58.22, with a standard deviation of 12.88 suggesting moderate volatility. In the recent period from September 14, 2025, to November 30, 2025, PSN recorded a positive price change of +9.79%, further confirming its bullish momentum.
For Teledyne Technologies Incorporated (TDY), the overall trend remains bullish, with a price increase of +14.64% over the past year. However, the trend is showing signs of deceleration. The stock exhibited a high of 587.62 and a low of 374.64, with a higher standard deviation of 53.47 indicating greater volatility compared to PSN. In the recent analysis period, TDY saw a price decrease of -10.26%, which suggests a shift in market dynamics that warrants caution.
Analyst Opinions
Recent analyst recommendations indicate a consensus to buy Parsons Corporation (PSN) with an A- rating, driven by strong discounted cash flow and return on assets scores. Analysts appreciate its solid financial metrics, making it a favorable investment option. Conversely, Teledyne Technologies Incorporated (TDY) received a B+ rating, with analysts suggesting a hold due to moderate performance in return on equity and price-to-earnings ratios. Overall, the consensus leans towards a buy for PSN while TDY is recommended as a hold, reflecting varied investor sentiments in the current market.
Stock Grades
In the current landscape of stock evaluations, I have gathered reliable grades from notable grading companies to help you assess the potential of certain stocks in your portfolio.
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 Parsons Corporation shows a recent upgrade to “Outperform,” indicating a positive outlook, while Teledyne Technologies maintains a consistent “Buy” rating from multiple firms, reflecting stability and confidence in its performance.
Target Prices
The consensus target prices from analysts for Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY) indicate positive expectations for both companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Parsons Corporation (PSN) | 107 | 90 | 95.5 |
| Teledyne Technologies Incorporated (TDY) | 645 | 584 | 616 |
Analysts expect Parsons Corporation to reach a target consensus of $95.5, suggesting a potential upside from its current price of $84.06. Teledyne Technologies has a target consensus of $616, indicating a favorable outlook compared to its current price of $498.95.
Strengths and Weaknesses
The table below outlines the strengths and weaknesses of Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY) based on recent financial and operational data.
| Criterion | Parsons Corporation (PSN) | Teledyne Technologies (TDY) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Moderate | High |
| Innovation | High | High |
| Global presence | Moderate | Strong |
| Market Share | Moderate | High |
| Debt level | Moderate | Low |
Key takeaways indicate that while both companies exhibit high innovation, Teledyne Technologies shows superior profitability and market share, making it a more robust option for investors seeking growth with lower debt risk.
Risk Analysis
In assessing the investment risks associated with Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY), the following table summarizes key risk factors.
| Metric | Parsons Corporation (PSN) | Teledyne Technologies Incorporated (TDY) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | Low |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | High | Moderate |
Both companies face various risks that could impact their performance. Market volatility and geopolitical instability are notable concerns, particularly for PSN, which has significant exposure to defense contracts and international operations.
Which one to choose?
When comparing Parsons Corporation (PSN) and Teledyne Technologies Incorporated (TDY), both companies show promising fundamentals, yet differ significantly in financial ratios and market performance. PSN has a stronger overall rating of A- compared to TDY’s B+, reflecting better return on equity and assets. PSN’s price-to-earnings ratio of 41.7 suggests higher valuation, but its recent stock trend is bullish with a 36.4% increase, indicating growth potential. TDY’s price-to-earnings ratio of 26.5 is more attractive for value-focused investors, despite a recent decline in stock price by 10.3%.
For growth-focused investors, PSN may prove more rewarding, while those seeking stability might lean towards TDY, which has shown resilience despite recent market fluctuations. Both companies carry risks, including PSN’s higher valuation concerns and TDY’s dependence on market conditions.
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:
