HP vs Leidos

HP Inc. and Leidos Holdings, Inc.: This page compares business models, financial performance, and market context to help readers understand how the two organisations approach growth, risk, and value within their sectors, while remaining neutral and accessible. Educational content, not financial advice.

HP Inc. and Leidos Holdings, Inc.: This page compares business models, financial performance, and market context to help readers understand how the two organisations approach growth, risk, and value w...

Comparison Snapshot

Key Financial Metrics

HPQ

Metric

LDOS

$18.19B

Market Cap

$24.04B

32.93%

Potential Profit

15.35%

Hold

Analyst Rating

Buy

Why It's Moving

HP Unveils AI-Powered PCs and Printers at CES 2026, Sparking Buzz in PCs and Printers Sector

Debuted world's first commercial notebooks with up to 85 TOPS NPU for seamless AI multitasking, including EliteBook X G2 Series and OmniBook Ultra 14 with Snapdragon X2 Elite.
Integrated Microsoft Copilot into HP Office Print devices for instant productivity boosts at the printer, plus new firmware recovery in Workforce Experience Platform.
Declared quarterly dividend payable April 1, yielding 6.2%, while National Pension Service boosted its HPQ stake, underscoring investor confidence despite mixed analyst holds.

Sentiment:

🐃Bullish

Leidos stock dips amid broader market gains as $2.4B Entrust acquisition grabs spotlight.

LDOS closed down 1.24% at $187.15 while the market climbed, highlighting investor caution over the timing of the Entrust deal.
Announced $2.4B all-cash acquisition of Entrust, set to close in Q2 2026, expanding Leidos' footprint in critical power and digital trust tech.
Secured $1.4B 364-day bridge facility from Citi to finance the deal, signaling confidence but adding short-term debt scrutiny ahead of Feb 17 earnings.

Sentiment:

⚖️Neutral

HP Unveils AI-Powered PCs and Printers at CES 2026, Sparking Buzz in PCs and Printers Sector

Debuted world's first commercial notebooks with up to 85 TOPS NPU for seamless AI multitasking, including EliteBook X G2 Series and OmniBook Ultra 14 with Snapdragon X2 Elite.
Integrated Microsoft Copilot into HP Office Print devices for instant productivity boosts at the printer, plus new firmware recovery in Workforce Experience Platform.
Declared quarterly dividend payable April 1, yielding 6.2%, while National Pension Service boosted its HPQ stake, underscoring investor confidence despite mixed analyst holds.

Sentiment:

🐃Bullish

Leidos stock dips amid broader market gains as $2.4B Entrust acquisition grabs spotlight.

LDOS closed down 1.24% at $187.15 while the market climbed, highlighting investor caution over the timing of the Entrust deal.
Announced $2.4B all-cash acquisition of Entrust, set to close in Q2 2026, expanding Leidos' footprint in critical power and digital trust tech.
Secured $1.4B 364-day bridge facility from Citi to finance the deal, signaling confidence but adding short-term debt scrutiny ahead of Feb 17 earnings.

Sentiment:

⚖️Neutral

Investment Analysis

HP

HPQ

Pros

HP Inc. consistently returns cash to shareholders, maintaining dividend payments for over 50 consecutive years.
The company is expanding its AI-powered product portfolio, with such offerings now representing a quarter of its product mix.
Recent quarters show revenue growth and operational milestones, including successful manufacturing and supply chain diversification.

Considerations

HP’s return on equity remains deeply negative, indicating ongoing challenges in generating profitable shareholder returns.
Global PC and printer demand is cyclical and subject to macroeconomic headwinds, which may dampen growth during downturns.
Recent technical sentiment and price volatility suggest a bearish short-term outlook despite analyst expectations for modest gains.

Leidos

LDOS

Pros

Leidos benefits from strong government contract relationships, securing $8.1 billion in recent bookings at a robust book-to-bill ratio.
The company is integrating artificial intelligence across multiple sectors, including defense and cybersecurity, supporting long-term growth.
Leidos exhibits sound operational efficiency with recent EPS beats, strong free cash flow, and healthy interest coverage.

Considerations

A significant share of revenue comes from government contracts, exposing Leidos to potential budget cuts and shifts in public sector priorities.
Valuation metrics such as price-to-book and price-to-sales are elevated relative to sector peers, suggesting less margin for error.
Despite AI integration, revenue growth depends heavily on large, multi-year contracts that may slow with changes in government policy.

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