Tufin Software Technologies (TUFN) versus Leidos (LDOS) Critical Survey

Tufin Software Technologies (NYSE:TUFN) and Leidos (NYSE:LDOS) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Profitability

This table compares Tufin Software Technologies and Leidos’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tufin Software Technologies N/A N/A N/A
Leidos 6.47% 20.08% 7.56%

Institutional & Insider Ownership

76.7% of Leidos shares are owned by institutional investors. 1.2% of Leidos shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Tufin Software Technologies and Leidos, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tufin Software Technologies 0 2 6 0 2.75
Leidos 0 1 5 0 2.83

Tufin Software Technologies presently has a consensus price target of $28.86, suggesting a potential upside of 26.34%. Leidos has a consensus price target of $80.33, suggesting a potential upside of 5.36%. Given Tufin Software Technologies’ higher probable upside, equities research analysts clearly believe Tufin Software Technologies is more favorable than Leidos.

Valuation & Earnings

This table compares Tufin Software Technologies and Leidos’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tufin Software Technologies N/A N/A N/A N/A N/A
Leidos $10.19 billion 1.08 $582.00 million $4.38 17.41

Leidos has higher revenue and earnings than Tufin Software Technologies.

Dividends

Leidos pays an annual dividend of $1.28 per share and has a dividend yield of 1.7%. Tufin Software Technologies does not pay a dividend. Leidos pays out 29.2% of its earnings in the form of a dividend.

Summary

Leidos beats Tufin Software Technologies on 8 of the 11 factors compared between the two stocks.

Tufin Software Technologies Company Profile

Tufin Ltd. provides security policy management solutions. It offers Orchestration Suite, a solution for automatically designing, provisioning, analyzing, and auditing network security changes from the application layer down to the network layer; SecureTrack, a management platform for firewalls, routers, load-balancers, and additional network devices; SecureChange, a solution for automating firewall and router configuration changes across complex networks; SecureApp, a solution that enables organizations to manage network connectivity and security policies; and Tufin Iris, a cloud-native solution that enables cloud operations and IT security teams to gain visibility and control of security policies for cloud-based applications. The company provides solutions in the areas of change management, software-defined data center, firewall optimization, payment card industry data security standard compliance, network segmentation, continuous compliance, risk management, next generation firewall, and business continuity aspects for firewall/network administrators, chief security officers/chief information security officers, compliance officers, service providers, independent auditors, application owners, and chief information officers. It serves telecommunication, financial, energy and utility, retail, government, transportation, and pharmaceutical markets through a network of partners worldwide. The company was founded in 2004 and is headquartered in Ramat Gan, Israel with additional offices in North America, Europe, and the Asia Pacific.

Leidos Company Profile

Leidos Holdings, Inc. 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, 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 the 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; and vehicle and cargo inspection system, which enables the scanning of vehicles and cargo that produces an image using a low radiation dose. 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; 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.

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