Leidos (LDOS) and Aerohive Networks (HIVE) Head-To-Head Analysis

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

Volatility & Risk

Leidos has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, Aerohive Networks has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Dividends

Leidos pays an annual dividend of $1.28 per share and has a dividend yield of 2.2%. Aerohive Networks does not pay a dividend. Leidos pays out 34.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for Leidos and Aerohive Networks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leidos 0 2 6 0 2.75
Aerohive Networks 0 1 1 0 2.50

Leidos presently has a consensus target price of $73.88, suggesting a potential upside of 25.21%. Aerohive Networks has a consensus target price of $5.25, suggesting a potential upside of 32.24%. Given Aerohive Networks’ higher probable upside, analysts plainly believe Aerohive Networks is more favorable than Leidos.

Earnings and Valuation

This table compares Leidos and Aerohive Networks’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Leidos $10.17 billion 0.88 $366.00 million $3.72 15.86
Aerohive Networks $152.90 million 1.42 -$22.92 million ($0.41) -9.68

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

Profitability

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

Net Margins Return on Equity Return on Assets
Leidos 3.95% 17.90% 6.70%
Aerohive Networks -13.93% -95.00% -15.69%

Institutional & Insider Ownership

73.1% of Leidos shares are owned by institutional investors. Comparatively, 48.1% of Aerohive Networks shares are owned by institutional investors. 1.1% of Leidos shares are owned by company insiders. Comparatively, 26.1% of Aerohive Networks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Leidos beats Aerohive Networks on 12 of the 16 factors compared between the two stocks.

About Leidos

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.

About Aerohive Networks

Aerohive Networks, Inc., together with its subsidiaries, designs and develops cloud networking and enterprise Wi-Fi solutions in the Americas, Europe, the Middle East and Africa, and the Asia Pacific. The company provides hardware products, such as wireless access points, branch routers, and switches; tiered maintenance and support services comprising technical support, bug fixes, access to priority hardware replacement service, and unspecified upgrades; and Software as a Service subscriptions, including comparable maintenance and support services. Its cloud-based product comprises HiveManager NG, a network management application that features an updated user, improved troubleshooting, and expanded access to data and analytics, as well as an upgraded cloud-deployment platform. The company sells its products to industry verticals, including education, distributed enterprises, retail, healthcare, and healthcare through a network of authorized value-added resellers, value-added distributors, and managed service providers. Aerohive Networks, Inc. was incorporated in 2006 and is headquartered in Milpitas, California.

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