Leidos Holdings, Inc. and BigBear.ai Holdings, Inc. are two prominent players in the Information Technology Services sector, each leveraging advanced technology to serve government and commercial clients. While Leidos focuses on defense, intelligence, and health markets with extensive systems integration, BigBear.ai specializes in AI-driven decision support and analytics. This article will explore their strategies and market positions to help you identify which company offers the most compelling investment opportunity.
Table of contents
Companies Overview
I will begin the comparison between Leidos Holdings, Inc. and BigBear.ai Holdings, Inc. by providing an overview of these two companies and their main differences.
Leidos Holdings, Inc. Overview
Leidos Holdings, Inc. operates in defense, intelligence, civil, and health markets, delivering technology and systems solutions primarily in the U.S. and internationally. The company’s three segments—Defense Solutions, Civil, and Health—offer services ranging from national security systems to health information management. Founded in 1969 and headquartered in Reston, Virginia, Leidos is a major player with a market cap of 24.4B and 47,000 employees.
BigBear.ai Holdings, Inc. Overview
BigBear.ai Holdings, Inc. specializes in artificial intelligence and machine learning to support decision-making. Its two segments, Cyber & Engineering and Analytics, focus on cloud engineering, cybersecurity, and predictive analytics solutions. Headquartered in Columbia, Maryland, BigBear.ai is a smaller, more specialized firm with a market cap of 2.3B and around 630 employees, emphasizing technology consulting and data analytics services.
Key similarities and differences
Both companies operate in the information technology services sector, focusing on advanced technology solutions for government and commercial clients. Leidos has a broader scope with defense, civil, and health sectors, while BigBear.ai concentrates on AI-driven analytics and cybersecurity. Leidos is significantly larger in terms of market capitalization and workforce, whereas BigBear.ai exhibits higher stock volatility, reflecting different risk profiles and market positioning.
Income Statement Comparison
The table below compares key income statement metrics for Leidos Holdings, Inc. and BigBear.ai Holdings, Inc. for the most recent fiscal year available.
| Metric | Leidos Holdings, Inc. (LDOS) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| Market Cap | 24.4B | 2.3B |
| Revenue | 16.7B | 158M |
| EBITDA | 2.12B | -258M |
| EBIT | 1.83B | -270M |
| Net Income | 1.25B | -296M |
| EPS | 9.36 | -1.27 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Leidos Holdings, Inc.
Leidos Holdings, Inc. showed consistent revenue growth from 2020 to 2024, increasing from $12.3B to $16.7B, nearly 36% overall. Net income nearly doubled over the period, reaching $1.25B in 2024. Margins remained stable, with a favorable EBIT margin of 11% and net margin growth of 47%. The latest year saw solid revenue growth of 7.9% and a significant net margin improvement.
BigBear.ai Holdings, Inc.
BigBear.ai’s revenue increased by 73% from 2020 to 2024, reaching $158M, but net income remained negative, with a loss of $296M in 2024. Gross margin was favorable at 28.6%, yet EBIT and net margins were deeply negative, reflecting ongoing operating losses. In 2024, revenue growth slowed to 2%, while profitability deteriorated further with widening net losses and unfavorable margin trends.
Which one has the stronger fundamentals?
Leidos Holdings exhibits stronger fundamentals with sustained revenue and net income growth, stable and improving margins, and favorable overall income statement evaluations. In contrast, BigBear.ai, despite revenue growth, struggles with persistent losses, negative margins, and deteriorating profitability metrics. The fundamental financial health clearly favors Leidos Holdings in this comparison.
Financial Ratios Comparison
The table below presents the most recent financial ratios for Leidos Holdings, Inc. (LDOS) and BigBear.ai Holdings, Inc. (BBAI) based on their 2024 fiscal year data, providing a snapshot of their profitability, liquidity, leverage, efficiency, and dividend metrics.
| Ratios | Leidos Holdings, Inc. (LDOS) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| ROE | 28.4% | 79.6% |
| ROIC | 13.9% | -93.4% |
| P/E | 15.7 | -3.52 |
| P/B | 4.47 | -279.9 |
| Current Ratio | 1.21 | 0.46 |
| Quick Ratio | 1.13 | 0.46 |
| D/E | 1.20 | -39.42 |
| Debt-to-Assets | 40.4% | 42.6% |
| Interest Coverage | 9.47 | -5.20 |
| Asset Turnover | 1.27 | 0.46 |
| Fixed Asset Turnover | 10.7 | 14.6 |
| Payout Ratio | 16.6% | 0% |
| Dividend Yield | 1.05% | 0% |
Interpretation of the Ratios
Leidos Holdings, Inc.
Leidos shows a balanced profile with 50% favorable ratios and a slightly favorable overall view. Strong returns on equity (28.42%) and invested capital (13.85%) contrast with an unfavorable price-to-book ratio (4.47) and debt-to-equity level (1.2). Its dividend yield is modest at 1.05%, supported by stable payouts without excessive buybacks, indicating manageable shareholder returns.
BigBear.ai Holdings, Inc.
BigBear.ai presents a challenging ratio set with 57.14% unfavorable metrics and an overall unfavorable rating. Negative net margin (-186.78%) and weak liquidity ratios (current and quick ratios at 0.46) raise concerns. The company pays no dividends, consistent with its negative earnings and reinvestment focus, prioritizing growth and R&D over shareholder returns currently.
Which one has the best ratios?
Leidos Holdings, Inc. exhibits a more favorable and balanced ratio structure, with solid profitability and liquidity indicators. In contrast, BigBear.ai’s financial ratios reflect operational struggles and liquidity weaknesses, coupled with an absence of dividend payouts. Overall, Leidos demonstrates stronger financial health based on the available ratio assessments.
Strategic Positioning
This section compares the strategic positioning of Leidos Holdings, Inc. and BigBear.ai Holdings, Inc. across Market position, Key segments, and Exposure to technological disruption:
Leidos Holdings, Inc.
- Large market cap of 24.4B, stable with low beta, serving defense, civil, and health sectors amidst competition.
- Diversified segments: Defense Solutions, Civil, and Health, driving revenues from national security to healthcare.
- Positioned in national security and IT services with established systems, less exposed to rapid tech disruption.
BigBear.ai Holdings, Inc.
- Smaller market cap of 2.3B, higher volatility with beta over 3, focusing on AI-driven analytics and cybersecurity.
- Concentrated in two segments: Cyber & Engineering and Analytics, delivering AI and machine learning decision support.
- Strong focus on AI and cloud technology, exposed to fast-evolving technological changes and innovation risks.
Leidos Holdings, Inc. vs BigBear.ai Holdings, Inc. Positioning
Leidos has a broad, diversified portfolio across defense, civil, and health sectors, supporting stable revenues. BigBear.ai is more focused on AI and cybersecurity, presenting potential for growth but with higher volatility and narrower market segments.
Which has the best competitive advantage?
Leidos demonstrates a very favorable moat with growing ROIC and value creation, indicating durable competitive advantage. BigBear.ai shows a very unfavorable moat with declining ROIC, reflecting value destruction and weaker competitive positioning.
Stock Comparison
Over the past year, Leidos Holdings, Inc. (LDOS) and BigBear.ai Holdings, Inc. (BBAI) have exhibited strong bullish trends with notable price appreciations and shifting trading dynamics, though recent months reveal contrasting short-term movements.
Trend Analysis
Leidos Holdings, Inc. (LDOS) posted a 51.37% price increase over the past 12 months, reflecting a bullish trend with deceleration. The stock peaked at 198.42 and bottomed at 124.91, with recent price movement near neutral, showing slight deceleration.
BigBear.ai Holdings, Inc. (BBAI) recorded a substantial 221.03% gain over 12 months, also bullish but decelerating. Its volatility is lower than LDOS’s, ranging between 1.21 and 9.02. Recently, BBAI experienced a short-term bearish trend with a -9.54% decline.
Comparing both, BBAI delivered the highest market performance over the past year despite recent weakening, outperforming LDOS by a wide margin in total price appreciation.
Target Prices
The current consensus target prices indicate moderate upside potential for both companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Leidos Holdings, Inc. | 230 | 216 | 222.2 |
| BigBear.ai Holdings, Inc. | 6 | 6 | 6 |
Leidos Holdings’ consensus target price of 222.2 suggests a significant premium versus its current 190.82 USD share price. BigBear.ai’s consensus target price at 6 USD is slightly below its current trading price of 6.26 USD, signaling cautious analyst expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Leidos Holdings, Inc. (LDOS) and BigBear.ai Holdings, Inc. (BBAI):
Rating Comparison
LDOS Rating
- Rating: A-, classified as Very Favorable overall.
- Discounted Cash Flow Score: 5, indicating very favorable future cash flow value.
- ROE Score: 5, showing very efficient profit generation from equity.
- ROA Score: 4, favorable use of assets to generate earnings.
- Debt To Equity Score: 1, very unfavorable due to higher financial risk.
- Overall Score: 4, favorable financial standing.
BBAI Rating
- Rating: C-, classified as Very Favorable overall.
- Discounted Cash Flow Score: 1, indicating very unfavorable future cash flow value.
- ROE Score: 1, showing very unfavorable profit generation from equity.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 3, moderate financial risk.
- Overall Score: 1, very unfavorable financial standing.
Which one is the best rated?
Based strictly on the provided data, LDOS is better rated than BBAI across all key financial metrics except for debt-to-equity, where LDOS scores worse. Overall, LDOS shows a stronger financial profile and higher analyst ratings.
Scores Comparison
Here is a comparison of the financial scores for Leidos Holdings, Inc. and BigBear.ai Holdings, Inc.:
Leidos Holdings, Inc. Scores
- Altman Z-Score: 4.15, in safe zone, indicating low bankruptcy risk.
- Piotroski Score: 8, very strong financial health and value potential.
BigBear.ai Holdings, Inc. Scores
- Altman Z-Score: 2.93, in grey zone, moderate bankruptcy risk.
- Piotroski Score: 3, very weak financial health and value potential.
Which company has the best scores?
Leidos Holdings, Inc. exhibits stronger financial stability with a safe-zone Altman Z-Score and a very strong Piotroski Score. In contrast, BigBear.ai Holdings, Inc. scores lower in both metrics, indicating higher financial risk and weaker strength based on the provided data.
Grades Comparison
The following is a comparison of the latest grades assigned to Leidos Holdings, Inc. and BigBear.ai Holdings, Inc.:
Leidos Holdings, Inc. Grades
This table summarizes recent grades from key financial institutions for Leidos Holdings, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2026-01-13 |
| Stifel | Downgrade | Hold | 2026-01-08 |
| B of A Securities | Maintain | Buy | 2025-11-07 |
| Truist Securities | Maintain | Buy | 2025-11-05 |
| UBS | Maintain | Neutral | 2025-11-05 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-10-31 |
| Argus Research | Maintain | Buy | 2025-09-24 |
| B of A Securities | Maintain | Buy | 2025-09-04 |
| RBC Capital | Upgrade | Outperform | 2025-09-04 |
| UBS | Maintain | Neutral | 2025-08-07 |
Leidos Holdings shows a predominantly positive trend with multiple “Buy” ratings and some neutral stances, indicating cautious optimism among analysts.
BigBear.ai Holdings, Inc. Grades
This table summarizes recent grades from key financial institutions for BigBear.ai Holdings, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Cantor Fitzgerald | Downgrade | Neutral | 2026-01-07 |
| HC Wainwright & Co. | Maintain | Buy | 2025-11-11 |
| HC Wainwright & Co. | Maintain | Buy | 2025-08-12 |
| HC Wainwright & Co. | Maintain | Buy | 2025-07-01 |
| HC Wainwright & Co. | Maintain | Buy | 2025-03-07 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-03-07 |
| HC Wainwright & Co. | Maintain | Buy | 2024-12-30 |
| HC Wainwright & Co. | Maintain | Buy | 2024-11-06 |
| HC Wainwright & Co. | Maintain | Buy | 2024-10-15 |
| Cantor Fitzgerald | Maintain | Overweight | 2024-08-21 |
BigBear.ai has a stable pattern of “Buy” and “Overweight” grades, although a recent downgrade to “Neutral” by Cantor Fitzgerald suggests some caution.
Which company has the best grades?
Leidos Holdings, Inc. holds a stronger consensus with 19 “Buy” ratings and no negative grades, compared to BigBear.ai’s more mixed consensus of mostly “Buy” but recent downgrades. This difference may influence investor confidence and portfolio risk profiles.
Strengths and Weaknesses
Below is a comparative table highlighting the key strengths and weaknesses of Leidos Holdings, Inc. (LDOS) and BigBear.ai Holdings, Inc. (BBAI) based on their latest financial and operational metrics.
| Criterion | Leidos Holdings, Inc. (LDOS) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| Diversification | Highly diversified with strong segments in National Security ($9.55B), Defense ($2.03B), and Civil ($4.99B) | Limited diversification with majority revenue from Analytics segment ($158M) |
| Profitability | Favorable ROIC (13.85%) and ROE (28.42%), net margin neutral (7.53%) | Negative ROIC (-93.42%), negative net margin (-186.78%), but high ROE (7957.65%) due to accounting factors |
| Innovation | Steady investment in cybersecurity and defense technology; growing ROIC trend indicates sustainable innovation | Innovation uncertain; declining ROIC (-234.96%) and value destruction suggest struggles in maintaining competitive edge |
| Global presence | Strong global footprint in defense and civil markets with multi-billion revenue streams | Smaller scale with limited global reach indicated by revenue size and concentration |
| Market Share | Leading player in defense and national security sectors with consistent revenue growth | Small market share; revenues below $160M, struggling to establish dominance |
Leidos demonstrates a robust and diversified business model with strong profitability and a durable competitive advantage. In contrast, BigBear.ai faces profitability challenges and limited scale, indicating higher investment risks despite some favorable ratio outliers.
Risk Analysis
Below is a comparison table of key risks for Leidos Holdings, Inc. (LDOS) and BigBear.ai Holdings, Inc. (BBAI) based on their most recent financial and operational data from 2024.
| Metric | Leidos Holdings, Inc. (LDOS) | BigBear.ai Holdings, Inc. (BBAI) |
|---|---|---|
| Market Risk | Low (Beta 0.59) | High (Beta 3.21) |
| Debt Level | Moderate (Debt/Equity 1.2) | Low/Unusual (Negative Debt/Equity) |
| Regulatory Risk | Moderate (Defense & Gov. contracts) | Moderate (AI & Cybersecurity sector) |
| Operational Risk | Moderate (Large-scale systems integration) | High (Emerging tech & scale-up challenges) |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate (Exposure to US defense & allies) | Low |
In synthesis, BigBear.ai faces the highest market risk due to its high beta and operational challenges tied to rapid growth and technology adoption. Leidos shows moderate debt and geopolitical exposure given its defense sector focus but benefits from a stable market profile with strong financial health signals. Investors should weigh BigBear.ai’s volatility and weak liquidity against Leidos’ steadier outlook with moderate risks.
Which Stock to Choose?
Leidos Holdings, Inc. (LDOS) shows a favorable income evolution with net margin growth of 47.37% over 2020-2024 and an overall favorable income statement evaluation. Its financial ratios are slightly favorable, with strong ROE and ROIC but moderate concerns on debt levels. The company holds a very favorable rating of A- and a very favorable MOAT rating, indicating durable competitive advantage and value creation.
BigBear.ai Holdings, Inc. (BBAI) has an unfavorable income evolution marked by a negative net margin and declining profitability, despite notable revenue growth. Its financial ratios are unfavorable, with poor liquidity and profitability metrics, though some ratios like ROE appear distorted. The overall rating is very unfavorable at C-, and the MOAT rating is very unfavorable, reflecting value destruction and declining returns.
For investors prioritizing stability and quality, LDOS could appear more favorable due to its consistent profitability, strong financial health, and durable competitive advantage. Conversely, risk-tolerant investors seeking high growth potential might see BBAI’s significant price appreciation and revenue growth as opportunities, despite its financial challenges and unfavorable ratings.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Leidos Holdings, Inc. and BigBear.ai Holdings, Inc. to enhance your investment decisions:
