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

$17.86B

Market Cap

$24.23B

30.39%

Potential Profit

16.97%

Hold

Analyst Rating

Buy

Why It's Moving

HPQ Dips as Morgan Stanley Flags IT Hardware Storm, Sparking Value Debate

Morgan Stanley slashed its HPQ price target by 10% to $18 while keeping an Underweight rating, dragging shares down 1.7% and pressuring peers like Dell.
Analysts highlight a 'perfect storm' in IT hardware, with HPQ underperforming the market by lagging S&P 500 gains amid a 13.65% monthly drop.
Despite pressure, HPQ trades at a low 7.2x P/E versus industry averages, fueling talk of undervaluation ahead of expected earnings growth.

Sentiment:

🐻Bearish

Leidos edges lower amid market selloff as investors await earnings catalysts.

Stock bucked the trend, falling less than S&P 500's 2.06% drop, highlighting relative resilience in defence IT sector.
Analysts forecast Q4 EPS of $2.55, up 7.59% year-over-year, with full-year EPS jumping 15% to $11.74 on steady revenue.
Insider filed to sell 3,000 vested shares worth $584K acquired January 20, amid no material adverse info disclosed.

Sentiment:

⚖️Neutral

HPQ Dips as Morgan Stanley Flags IT Hardware Storm, Sparking Value Debate

Morgan Stanley slashed its HPQ price target by 10% to $18 while keeping an Underweight rating, dragging shares down 1.7% and pressuring peers like Dell.
Analysts highlight a 'perfect storm' in IT hardware, with HPQ underperforming the market by lagging S&P 500 gains amid a 13.65% monthly drop.
Despite pressure, HPQ trades at a low 7.2x P/E versus industry averages, fueling talk of undervaluation ahead of expected earnings growth.

Sentiment:

🐻Bearish

Leidos edges lower amid market selloff as investors await earnings catalysts.

Stock bucked the trend, falling less than S&P 500's 2.06% drop, highlighting relative resilience in defence IT sector.
Analysts forecast Q4 EPS of $2.55, up 7.59% year-over-year, with full-year EPS jumping 15% to $11.74 on steady revenue.
Insider filed to sell 3,000 vested shares worth $584K acquired January 20, amid no material adverse info disclosed.

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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