Leidos (NYSE: LDOS) and Spirit AeroSystems (NYSE:SPR) are both aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
Valuation and Earnings
This table compares Leidos and Spirit AeroSystems’ top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Leidos has higher revenue and earnings than Spirit AeroSystems. Leidos is trading at a lower price-to-earnings ratio than Spirit AeroSystems, indicating that it is currently the more affordable of the two stocks.
This table compares Leidos and Spirit AeroSystems’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Leidos pays an annual dividend of $1.28 per share and has a dividend yield of 1.9%. Spirit AeroSystems pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. Leidos pays out 53.8% of its earnings in the form of a dividend. Spirit AeroSystems pays out 13.2% 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.
This is a breakdown of current recommendations for Leidos and Spirit AeroSystems, as reported by MarketBeat.
||Strong Buy Ratings
Leidos presently has a consensus price target of $72.13, suggesting a potential upside of 6.73%. Spirit AeroSystems has a consensus price target of $99.75, suggesting a potential upside of 15.99%. Given Spirit AeroSystems’ higher probable upside, analysts plainly believe Spirit AeroSystems is more favorable than Leidos.
Risk & Volatility
Leidos has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Spirit AeroSystems has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
Insider & Institutional Ownership
73.1% of Leidos shares are held by institutional investors. Comparatively, 97.5% of Spirit AeroSystems shares are held by institutional investors. 1.7% of Leidos shares are held by company insiders. Comparatively, 0.9% of Spirit AeroSystems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Spirit AeroSystems beats Leidos on 9 of the 16 factors compared between the two stocks.
Leidos Company Profile
Leidos Holdings, Inc. provides services and solutions in the defense, intelligence, civil, and health markets primarily in the United States. The company operates through three segments: Defense Solutions, Civil, and Health. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S. intelligence community, Department of Defense, military services, the U.S. Department of Homeland Security, and government agencies of U.S. allies abroad, as well as other federal, civilian, and commercial customers in national security industry. Its solutions include technology, intelligence systems, command and control, 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, Transportation Security Administration, and airport operators; vehicle and cargo inspection system, which enables the scanning of vehicles and cargo that produces a image using a low radiation dose; IT solutions in cloud computing, mobility, application modernization, DevOps, data center, network modernization, asset management, help desk operations, and digital workplace enablement; federal environment and infrastructure; and logistics services. The Health segment offers solutions to federal and commercial customers responsible for health and well-being of people worldwide, including complex systems integration, managed health services, enterprise IT transformation, and life sciences services. The company was founded in 1969 and is headquartered in Reston, Virginia.
Spirit AeroSystems Company Profile
Spirit AeroSystems Holdings, Inc. is a non-original equipment manufacturer (OEM), aircraft parts designer and manufacturer of commercial aero-structures. The Company is also a supplier of aero-structures. The Company operates through three segments: Fuselage Systems, Propulsion Systems and Wing Systems. The Fuselage Systems segment includes the development, production and marketing of forward, mid and rear fuselage sections and systems. The Propulsion Systems segment includes the development, production and marketing of struts/pylons, nacelles (including thrust reversers) and related engine structural components. The Wing Systems segment includes the development, production and marketing of wings and wing components (including flight control surfaces), and other miscellaneous structural parts. The Company’s maintenance, repair and overhaul (MRO) services include repair stations that provide complete on-site repair and overhaul.
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