LDOS vs. CTSH, IT, BAH, EPAM, CACI, DOX, TDC, HCKT, FORR, and UIS
Should you be buying Leidos stock or one of its competitors? The main competitors of Leidos include Cognizant Technology Solutions (CTSH), Gartner (IT), Booz Allen Hamilton (BAH), EPAM Systems (EPAM), CACI International (CACI), Amdocs (DOX), Teradata (TDC), The Hackett Group (HCKT), Forrester Research (FORR), and Unisys (UIS). These companies are all part of the "it consulting & other services" industry.
Cognizant Technology Solutions (NASDAQ:CTSH) and Leidos (NYSE:LDOS) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, community ranking, dividends, institutional ownership, valuation, earnings, risk, analyst recommendations and media sentiment.
Cognizant Technology Solutions currently has a consensus target price of $75.67, suggesting a potential upside of 14.39%. Leidos has a consensus target price of $145.67, suggesting a potential downside of 0.94%. Given Leidos' higher probable upside, analysts plainly believe Cognizant Technology Solutions is more favorable than Leidos.
Cognizant Technology Solutions has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Leidos has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.
Cognizant Technology Solutions pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. Leidos pays an annual dividend of $1.52 per share and has a dividend yield of 1.0%. Cognizant Technology Solutions pays out 28.8% of its earnings in the form of a dividend. Leidos pays out 65.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cognizant Technology Solutions has raised its dividend for 5 consecutive years and Leidos has raised its dividend for 5 consecutive years. Cognizant Technology Solutions is clearly the better dividend stock, given its higher yield and lower payout ratio.
Cognizant Technology Solutions received 575 more outperform votes than Leidos when rated by MarketBeat users. Likewise, 75.00% of users gave Cognizant Technology Solutions an outperform vote while only 63.98% of users gave Leidos an outperform vote.
In the previous week, Cognizant Technology Solutions had 2 more articles in the media than Leidos. MarketBeat recorded 10 mentions for Cognizant Technology Solutions and 8 mentions for Leidos. Leidos' average media sentiment score of 1.50 beat Cognizant Technology Solutions' score of 1.15 indicating that Cognizant Technology Solutions is being referred to more favorably in the media.
92.4% of Cognizant Technology Solutions shares are held by institutional investors. Comparatively, 76.1% of Leidos shares are held by institutional investors. 0.3% of Cognizant Technology Solutions shares are held by company insiders. Comparatively, 1.0% of Leidos shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Cognizant Technology Solutions has a net margin of 10.84% compared to Cognizant Technology Solutions' net margin of 2.04%. Cognizant Technology Solutions' return on equity of 25.66% beat Leidos' return on equity.
Cognizant Technology Solutions has higher revenue and earnings than Leidos. Cognizant Technology Solutions is trading at a lower price-to-earnings ratio than Leidos, indicating that it is currently the more affordable of the two stocks.
Summary
Cognizant Technology Solutions beats Leidos on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LDOS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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