Endava (NYSE:DAVA) & Leidos (NYSE:LDOS) Critical Comparison

Endava (NYSE:DAVA) and Leidos (NYSE:LDOS) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endava	$999.23 million	0.34	$27.45 million	$0.20	30.48
Leidos	$16.66 billion	1.42	$1.25 billion	$10.72	17.32

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

Insider & Institutional Ownership

62.2% of Endava shares are owned by institutional investors. Comparatively, 76.1% of Leidos shares are owned by institutional investors. 18.8% of Endava shares are owned by insiders. Comparatively, 1.0% of Leidos shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Endava has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Leidos has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Endava	1.34%	5.66%	3.64%
Leidos	8.11%	33.02%	11.40%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Endava and Leidos, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endava	1	8	3	0	2.17
Leidos	0	7	10	0	2.59

Endava presently has a consensus price target of $18.00, indicating a potential upside of 195.32%. Leidos has a consensus price target of $199.23, indicating a potential upside of 7.30%. Given Endava’s higher probable upside, research analysts plainly believe Endava is more favorable than Leidos.

Summary

Leidos beats Endava on 10 of the 14 factors compared between the two stocks.

About Endava

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. The company also provides automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, telemetry and monitoring, organizational optimization, and transaction advisory services. Endava plc was founded in 2000 and is headquartered in London, the United Kingdom.

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.