Critical Review: Randstad (OTCMKTS:RANJF) and Leidos (NYSE:LDOS)

Leidos (NYSE:LDOS) and Randstad (OTCMKTS:RANJF) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Institutional & Insider Ownership

76.1% of Leidos shares are owned by institutional investors. Comparatively, 24.0% of Randstad shares are owned by institutional investors. 0.8% of Leidos shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Leidos	7.80%	30.81%	10.78%
Randstad	N/A	N/A	N/A

Earnings & Valuation

This table compares Leidos and Randstad”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leidos	$17.63 billion	1.01	$1.45 billion	$10.72	13.21
Randstad	N/A	N/A	N/A	$1.60	23.27

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Leidos and Randstad, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leidos	0	10	6	1	2.47
Randstad	0	0	0	0	0.00

Leidos presently has a consensus price target of $162.93, suggesting a potential upside of 15.05%. Given Leidos’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Leidos is more favorable than Randstad.

Summary

Leidos beats Randstad on 11 of the 12 factors compared between the two stocks.

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.

About Randstad

Randstad N.V. provides solutions in the field of work and human resources (HR) services. The company provides temporary staffing and permanent placement services; job posting; and résumé services on digital platforms. It offers inhouse, enterprise and digital, and tech suite services. In addition, the company provides managed services programs, recruitment process outsourcing, outplacement and career development, and online talent acquisition. It has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally. The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018. Randstad N.V. was founded in 1960 and is headquartered in Diemen, the Netherlands.