AAR vs Parsons: Which Is the Stronger Buy Today?

PSN: Parsons logo
PSN
Parsons

Parsons fell -25% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer AAR gives you more. AAR (AIR) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Parsons (PSN) stock, suggesting you may be better off investing in AIR

  • AIR’s quarterly revenue growth was 11.8%, vs. PSN’s -10.4%.
  • In addition, its Last 12 Months revenue growth came in at 17.6%, ahead of PSN’s -0.2%.
  • AIR leads on profitability over both periods – LTM margin of 7.0% and 3-year average of 6.4%.

These differences become even clearer when you look at the financials side by side. The table highlights how PSN’s fundamentals stack up against those of AIR on growth, margins, momentum, and valuation multiples.

Valuation & Performance Overview

  PSN AIR Preferred
     
Valuation      
P/EBIT Ratio 16.1 14.7 AIR
     
Revenue Growth      
Last Quarter -10.4% 11.8% AIR
Last 12 Months -0.2% 17.6% AIR
Last 3 Year Average 17.9% 16.4% PSN
     
Operating Margins      
Last 12 Months 6.3% 7.0% AIR
Last 3 Year Average 6.2% 6.4% AIR
     
Momentum      
Last 3 Year Return 33.6% 84.4% AIR

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: PSN Revenue Comparison | AIR Revenue Comparison
See more margin details: PSN Operating Income Comparison | AIR Operating Income Comparison

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See detailed fundamentals on Buy or Sell AIR Stock and Buy or Sell PSN Stock. Below we compare market return and related metrics across years.

Historical Market Performance

  2020 2021 2022 2023 2024 2025 Total [1] Avg Best
Returns
PSN Return -12% -8% 37% 36% 47% -33% 51%    
AIR Return -19% 8% 15% 39% -2% 36% 86%    
S&P 500 Return 16% 27% -19% 24% 23% 16% 112% <===
Monthly Win Rates [3]
PSN Win Rate 42% 42% 58% 67% 67% 67%   57%  
AIR Win Rate 58% 42% 58% 58% 50% 58%   54%  
S&P 500 Win Rate 58% 75% 42% 67% 75% 67%   64% <===
Max Drawdowns [4]
PSN Max Drawdown -39% -15% -11% -12% -2% -40%   -20%  
AIR Max Drawdown -79% -13% -10% -1% -9% -21%   -22%  
S&P 500 Max Drawdown -31% -1% -25% -1% -2% -15%   -12% <===

[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 12/31/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read AIR Dip Buyer Analyses and PSN Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.

Still not sure about PSN or AIR? Consider portfolio approach.

Why Stock Pickers Win More With Multi Asset Portfolios

Single markets are unpredictable but different assets react differently. A multi asset portfolio cuts downside shocks while keeping upside on the table.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices