Critical Survey: Leidos (NYSE:LDOS) and Ipsos (OTCMKTS:IPSOF)

Ipsos (OTCMKTS:IPSOF) and Leidos (NYSE:LDOS) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Insider and Institutional Ownership

34.2% of Ipsos shares are owned by institutional investors. Comparatively, 76.1% of Leidos shares are owned by institutional investors. 0.8% of Leidos shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Ipsos and Leidos, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ipsos	0	0	0	0	0.00
Leidos	0	10	6	1	2.47

Leidos has a consensus price target of $162.93, suggesting a potential upside of 15.79%. Given Leidos’ stronger consensus rating and higher possible upside, analysts clearly believe Leidos is more favorable than Ipsos.

Earnings and Valuation

This table compares Ipsos and Leidos”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ipsos	N/A	N/A	N/A	$1.90	20.89
Leidos	$17.63 billion	1.00	$1.45 billion	$10.72	13.13

Leidos has higher revenue and earnings than Ipsos. Leidos is trading at a lower price-to-earnings ratio than Ipsos, indicating that it is currently the more affordable of the two stocks.

Dividends

Ipsos pays an annual dividend of $0.70 per share and has a dividend yield of 1.8%. Leidos pays an annual dividend of $1.72 per share and has a dividend yield of 1.2%. Ipsos pays out 36.9% of its earnings in the form of a dividend. Leidos pays out 16.0% 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. Leidos has raised its dividend for 6 consecutive years.

Profitability

This table compares Ipsos and Leidos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ipsos	N/A	N/A	N/A
Leidos	7.80%	30.81%	10.78%

Summary

Leidos beats Ipsos on 13 of the 15 factors compared between the two stocks.

About Ipsos

Ipsos SA, through its subsidiaries, provides survey-based research services for companies and institutions in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company offers services in the information production and analysis chain, including data collection, data processing and integration, data analysis, information delivery and presentation, and information activation. It also provides audience measurement, automotive and mobility development, brand health tracking, channel performance, corporate reputation, creative excellence, customer experience, healthcare, innovation, Ipsos MMA, Ipsos UU, market strategy and understanding, observer, public affairs, social intelligence analytics, and other specialist services, as well as research methodologies, such as device agnosticism, programmatic sampling, and digital face-to-face interview. In addition, the company offers online and mobile integrated services and device agnostic solutions that include online surveys adapted to laptops, smartphones, and tablets; and qualitative research services, as well as operates Ipsos.Digital, a do-it-yourself platform. Further, it provides artificial intelligence and data science solutions that develops and provides analytical tools based on data science, machine learning, big analytics, and modelling; and behavioral science and neuroscience solutions, as well as operates Ipsos Knowledge Centre for teams and clients. Ipsos SA was incorporated in 1975 and is headquartered in Paris, France.

About Leidos

Leidos Holdings, Inc., together with its subsidiaries, provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally. The company operates through Defense Solutions, Civil, and Health segments. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S. Intelligence Community, the Department of Defense, the space development agency, the National Aeronautics and Space Administration, defense information systems agency, military services, and government agencies of U.S. allies abroad, as well as other federal and commercial customers in the national security industry. The solutions include technology, large-scale systems, command and control platforms, data analytics, logistics, and cybersecurity solutions, as well as intelligence analysis and operations support services to critical missions. The Civil segment provides systems integration services to air navigation service providers, including the federal aviation administration, the En route automation modernization, advanced technology oceanic procedure, time based flow management, terminal flight data management, geo-7, and future flight services, as well as enterprise-information display systems; and security detection services. It also offers information technology (IT) solutions in cloud computing, mobility, application modernization, DevOps, data center, network modernization, asset management, help desk operations, and digital workplace enablement; and environment, energy, and infrastructure services. The Health segment offers solutions to federal and commercial customers responsible for health and well-being of people, include health information management, managed health, digital modernization, and life sciences research and development services. Leidos Holdings, Inc. was founded in 1969 and is headquartered in Reston, Virginia.