Gartner, Inc. (IT) vs Leidos Holdings, Inc. (LDOS)

Gartner, Inc. and Leidos Holdings, Inc. are both Information Technology Services companies. Leidos Holdings, Inc. is the larger, with a market value of $15.6B against $13.1B — 1.2× the size. Leidos Holdings, Inc. trades at the lower P/E: 11.5× against 18.4×. Leidos Holdings, Inc. grew revenue faster over the last twelve months: 3.41% against 0.68%. Gartner, Inc. has the higher net margin (12.0% vs 7.80%) and the higher return on invested capital (52.7% vs 12.0%). Across the 21 metrics below, Gartner, Inc. leads on 11 and Leidos Holdings, Inc. on 10.

Valuation

Metric IT LDOS Information Technology Services median
P/E 18.40 11.52 16.42
P/S 2.11 0.89 1.06
P/B n/m 2.95 1.57
Price to free cash flow 10.59 7.27 11.62
EV/EBITDA 10.38 9.02 9.74
EV/Sales 2.34 1.19 1.23
Earnings yield 5.43% 8.68% 4.25%
Free cash flow yield 9.44% 13.76% 4.50%

Profitability

Metric IT LDOS Information Technology Services median
Gross margin 69.63% 17.80% 29.97%
Operating margin 17.25% 11.51% 3.30%
Net margin 12.00% 7.80% 2.09%
Free cash flow margin 19.94% 12.29% 1.51%
Return on equity 113.58% 27.40% 3.67%
Return on assets 9.99% 9.43% 0.47%
Return on invested capital 52.67% 11.95% 0.57%

Growth

Metric IT LDOS Information Technology Services median
Revenue growth (TTM) 0.68% 3.41% 7.12%
EPS growth (last fiscal year) (39.69%) 20.82% 1.38%
Revenue growth, 5-year CAGR 9.65% 6.91% 7.86%
Net income growth, 5-year CAGR 22.28% 18.18% 0.00%

Health

Metric IT LDOS Information Technology Services median
Debt to equity (17.80) 1.13 0.45
Current ratio 0.88 1.63 1.66
Net debt to EBITDA 0.91 1.48 0.45

Dividend

Metric IT LDOS Information Technology Services median
Dividend yield — 1.38% 1.97%
Payout ratio — 0.16 0.30

Size

Metric IT LDOS Information Technology Services median
Market cap 13.09b 15.56b 1.11b

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