Head-To-Head Analysis: Leidos (NYSE:LDOS) versus ECARX (NASDAQ:ECX)

ECARX (NASDAQ:ECXGet Free Report) and Leidos (NYSE:LDOSGet Free Report) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Risk and Volatility

ECARX has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, Leidos has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Earnings and Valuation

This table compares ECARX and Leidos’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ECARX $515.70 million 0.20 -$223.18 million ($0.53) -5.26
Leidos $14.40 billion 1.09 $693.00 million $1.04 110.15

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

Institutional and Insider Ownership

16.2% of ECARX shares are held by institutional investors. Comparatively, 74.7% of Leidos shares are held by institutional investors. 20.0% of ECARX shares are held by insiders. Comparatively, 1.5% of Leidos shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for ECARX and Leidos, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ECARX 0 0 1 0 3.00
Leidos 0 3 8 0 2.73

ECARX presently has a consensus price target of $10.00, suggesting a potential upside of 258.42%. Leidos has a consensus price target of $114.36, suggesting a potential downside of 0.17%. Given ECARX’s stronger consensus rating and higher possible upside, analysts plainly believe ECARX is more favorable than Leidos.

Profitability

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

Net Margins Return on Equity Return on Assets
ECARX -32.10% N/A -34.47%
Leidos 0.97% 22.27% 7.57%

Summary

Leidos beats ECARX on 11 of the 14 factors compared between the two stocks.

About ECARX

(Get Free Report)

ECARX Holdings Inc. develops a full stack automotive computing platform to reshape the mobility market worldwide. Its principal products include infotainment head units, digital cockpits, and vehicle chip-set solutions, as well as core operating system and integrated software stack. The company was founded in 2017 and is based in London, the United Kingdom.

About Leidos

(Get Free Report)

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. It 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, 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. Its 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 and automation 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.

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