Atos (OTCMKTS:AEXAY) vs. Leidos (NYSE:LDOS) Critical Analysis

Leidos (NYSE:LDOS) and Atos (OTCMKTS:AEXAY) are both large-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Dividends

Leidos pays an annual dividend of $1.72 per share and has a dividend yield of 0.9%. Atos pays an annual dividend of $0.15 per share and has a dividend yield of 1.4%. Leidos pays out 16.0% of its earnings in the form of a dividend. Leidos has raised its dividend for 6 consecutive years.

Institutional & Insider Ownership

76.1% of Leidos shares are held by institutional investors. 1.0% of Leidos shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Leidos	8.11%	33.02%	11.40%
Atos	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Leidos and Atos, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leidos	0	7	10	0	2.59
Atos	0	0	0	0	0.00

Leidos presently has a consensus target price of $199.23, indicating a potential upside of 4.68%. Given Leidos’ stronger consensus rating and higher possible upside, analysts plainly believe Leidos is more favorable than Atos.

Valuation & Earnings

This table compares Leidos and Atos”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leidos	$17.33 billion	1.40	$1.25 billion	$10.72	17.75
Atos	$11.57 billion	852.60	-$3.72 billion	N/A	N/A

Leidos has higher revenue and earnings than Atos.

Volatility & Risk

Leidos has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Atos has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Summary

Leidos beats Atos on 11 of the 15 factors compared between the two stocks.

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.

About Atos

Atos SE provides digital transformation solutions and services worldwide. It offers advanced computing solutions; analytics, artificial intelligence, and automation solutions; cloud solutions; customer journey analytics and digital customer experience; decarbonization solutions; digital consulting; digital workplace solutions; edge computing and Internet of things solutions; and modern applications and platforms. The company also provides advance detection and response, data protection and governance, digital workplace security, IoT and OT security, trusted digital identities, and cybersecurity solutions; and infrastructure and foundation services. It serves financial services and insurance, healthcare and life sciences, manufacturing, public sector and defense, resources and services, and telecommunication and media industries. The company was incorporated in 1982 and is headquartered in Bezons, France.