Recruit (OTCMKTS:RCRUY – Get Free Report) and Leidos (NYSE:LDOS – Get Free Report) are both large-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.
Insider and Institutional Ownership
76.1% of Leidos shares are owned by institutional investors. 0.8% of Leidos shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Recruit and Leidos’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Recruit | 14.94% | 36.40% | 21.05% |
| Leidos | 7.80% | 30.81% | 10.78% |
Dividends
Valuation and Earnings
This table compares Recruit and Leidos”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Recruit | $24.56 billion | 6.16 | $3.28 billion | $0.52 | 39.54 |
| Leidos | $17.17 billion | 1.04 | $1.45 billion | $10.72 | 13.25 |
Recruit has higher revenue and earnings than Leidos. Leidos is trading at a lower price-to-earnings ratio than Recruit, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Recruit has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Leidos has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Recruit and Leidos, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Recruit | 0 | 1 | 0 | 0 | 2.00 |
| Leidos | 0 | 10 | 6 | 1 | 2.47 |
Leidos has a consensus price target of $162.93, indicating a potential upside of 14.73%. Given Leidos’ stronger consensus rating and higher probable upside, analysts plainly believe Leidos is more favorable than Recruit.
About Recruit
Recruit Holdings Co., Ltd. provides HR technology and business solutions that transforms the world of work. It operates through three segments: HR Technology, Matching & Solutions, and Staffing. The HR Technology segment provides various technological solutions that help job seekers and employers in navigating hiring and recruitment. The Matching & Solutions segment offers HR solutions that support business clients’ recruiting and hiring activities and individual users’ job search activities through its job advertising services and placement services. This segment also provides marketing solutions that provide matching platforms for businesses in various industries, including housing and real estate, beauty, bridal, travel, dining, and others, as well as SaaS solutions, which are business and management support tools for small and medium-sized companies. The Staffing segment provides temporary staffing services in Japan, Europe, the United States, and Australia. Recruit Holdings Co., Ltd. operates in more than 60 countries. The company was formerly known as Recruit Co., Ltd. and changed its name to Recruit Holdings Co., Ltd. in October 2012. Recruit Holdings Co., Ltd. was founded in 1960 and is headquartered in Tokyo, Japan.
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.
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