International Business Machines Corporation (IBM) vs Leidos Holdings, Inc. (LDOS)

International Business Machines Corporation and Leidos Holdings, Inc. are both Information Technology Services companies. International Business Machines Corporation is the larger, with a market value of $233.6B against $16.6B — 14.1× the size. Leidos Holdings, Inc. trades at the lower P/E: 12.0× against 20.9×. International Business Machines Corporation grew revenue faster over the last twelve months: 6.83% against 2.67%. International Business Machines Corporation has the higher net margin (16.0% vs 7.97%) and the lower return on invested capital (7.94% vs 12.1%). Both pay a dividend; International Business Machines Corporation yields more (2.72% vs 1.27%). Across the 23 metrics below, Leidos Holdings, Inc. leads on 15 and International Business Machines Corporation on 8.

Valuation

Metric IBM LDOS Information Technology Services median
P/E 20.86 11.95 17.60
P/S 3.36 0.94 1.16
P/B 6.48 3.21 1.93
Price to free cash flow 15.93 8.54 13.52
EV/EBITDA 17.30 9.42 9.79
EV/Sales 4.11 1.25 1.35
Earnings yield 4.79% 8.37% 2.99%
Free cash flow yield 6.28% 11.71% 0.07%

Profitability

Metric IBM LDOS Information Technology Services median
Gross margin 57.96% 17.63% 30.04%
Operating margin 16.17% 11.51% 1.67%
Net margin 15.99% 7.97% 0.79%
Free cash flow margin 21.07% 11.03% 0.00%
Return on equity 34.80% 27.88% 0.00%
Return on assets 7.41% 9.78% 0.00%
Return on invested capital 7.94% 12.05% 0.00%

Growth

Metric IBM LDOS Information Technology Services median
Revenue growth (TTM) 6.83% 2.67% 4.85%
EPS growth (last fiscal year) 73.72% 20.82% 3.57%
Revenue growth, 5-year CAGR 4.12% 6.91% 6.93%
Net income growth, 5-year CAGR 13.64% 18.18% 0.00%

Health

Metric IBM LDOS Information Technology Services median
Debt to equity 1.76 1.15 0.31
Current ratio 0.85 1.60 1.70
Net debt to EBITDA 2.95 1.48 0.55

Dividend

Metric IBM LDOS Information Technology Services median
Dividend yield 2.72% 1.27% 1.95%
Payout ratio 0.57 0.15 0.29

Size

Metric IBM LDOS Information Technology Services median
Market cap 233.55b 16.57b 1.11b

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