CDW Corporation (CDW) vs Leidos Holdings, Inc. (LDOS)

CDW Corporation and Leidos Holdings, Inc. are both Information Technology Services companies. CDW Corporation is the larger, with a market value of $17.4B against $15.6B — 1.1× the size. Leidos Holdings, Inc. trades at the lower P/E: 11.4× against 16.2×. CDW Corporation grew revenue faster over the last twelve months: 7.41% against 3.41%. Leidos Holdings, Inc. has the higher net margin (7.80% vs 4.60%) and the lower return on invested capital (12.0% vs 13.3%). Both pay a dividend; Leidos Holdings, Inc. yields more (1.30% vs 1.05%). Across the 23 metrics below, Leidos Holdings, Inc. leads on 17 and CDW Corporation on 6.

Valuation

Metric CDW LDOS Information Technology Services median
P/E 16.22 11.39 14.63
P/S 0.73 0.88 1.13
P/B 7.04 2.92 2.10
Price to free cash flow 19.99 7.19 10.11
EV/EBITDA 11.46 8.94 8.56
EV/Sales 0.96 1.18 1.20
Earnings yield 6.17% 8.78% 4.56%
Free cash flow yield 5.00% 13.91% 4.37%

Profitability

Metric CDW LDOS Information Technology Services median
Gross margin 21.36% 17.80% 31.05%
Operating margin 7.14% 11.51% 3.30%
Net margin 4.60% 7.80% 2.09%
Free cash flow margin 3.66% 12.29% 0.00%
Return on equity 44.01% 27.40% 4.12%
Return on assets 6.64% 9.43% 0.61%
Return on invested capital 13.28% 11.95% 0.57%

Growth

Metric CDW LDOS Information Technology Services median
Revenue growth (TTM) 7.41% 3.41% 7.12%
EPS growth (last fiscal year) 1.38% 20.82% —
Revenue growth, 5-year CAGR 3.96% 6.91% 7.71%
Net income growth, 5-year CAGR 6.23% 18.18% 0.00%

Health

Metric CDW LDOS Information Technology Services median
Debt to equity 2.38 1.13 0.45
Current ratio 1.17 1.63 1.66
Net debt to EBITDA 2.57 1.48 0.44

Dividend

Metric CDW LDOS Information Technology Services median
Dividend yield 1.05% 1.30% 1.21%
Payout ratio 0.29 0.28 0.00

Size

Metric CDW LDOS Information Technology Services median
Market cap 17.43b 15.56b 1.36b

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