In the fast-evolving world of information technology services, Fidelity National Information Services, Inc. (FIS) and Leidos Holdings, Inc. (LDOS) stand out as key players with distinct yet overlapping market focuses. FIS excels in financial technology solutions, while Leidos is prominent in defense and government IT services. This comparison explores their innovation strategies and market positions to help you identify the most promising investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Fidelity National Information Services, Inc. and Leidos Holdings, Inc. by providing an overview of these two companies and their main differences.
Fidelity National Information Services, Inc. Overview
Fidelity National Information Services, Inc. (FIS) provides technology solutions primarily for merchants, banks, and capital markets firms worldwide. It operates through three segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions. The company focuses on software-led acquiring, digital banking, fraud management, securities processing, and asset management, positioning itself as a comprehensive provider in financial technology services.
Leidos Holdings, Inc. Overview
Leidos Holdings, Inc. delivers services and solutions across defense, intelligence, civil, and health markets in the U.S. and internationally. Its three segments—Defense Solutions, Civil, and Health—offer national security systems, air navigation services, IT modernization, and health information management. Leidos emphasizes technology and systems integration to support government and commercial customers in complex, mission-critical environments.
Key similarities and differences
Both companies operate within the technology sector, providing specialized services tailored to institutional clients. FIS focuses on financial technology solutions serving banking and capital markets, while Leidos concentrates on defense, civil infrastructure, and health technology services. While FIS’s business model centers on financial transaction processing and software solutions, Leidos emphasizes systems integration and national security services, reflecting a clear divergence in target markets and service offerings.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for Fidelity National Information Services, Inc. (FIS) and Leidos Holdings, Inc. (LDOS) for their most recent fiscal year.
| Metric | Fidelity National Information Services, Inc. (FIS) | Leidos Holdings, Inc. (LDOS) |
|---|---|---|
| Market Cap | 33.1B | 24.4B |
| Revenue | 10.1B | 16.7B |
| EBITDA | 3.39B | 2.12B |
| EBIT | 1.65B | 1.83B |
| Net Income | 1.45B | 1.25B |
| EPS | 1.42 | 9.36 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Fidelity National Information Services, Inc.
FIS experienced a decline in revenue from $13.9B in 2021 to $10.1B in 2024, while net income fluctuated significantly, turning deeply negative in 2022 and 2023 before recovering to $1.45B in 2024. Gross and EBIT margins remained favorable, with a notable net margin improvement in the latest year. The 2024 performance showed a modest 3% revenue growth but strong margin and net income recovery.
Leidos Holdings, Inc.
LDOS showed steady revenue growth from $12.3B in 2020 to $16.6B in 2024, with net income rising from $628M to $1.25B over the same period. Margins were generally stable or improving, with gross margin rated neutral but EBIT and net margins favorable. The 2024 year saw a healthy 7.9% revenue increase, significant net margin expansion, and strong EPS growth, reflecting improving profitability.
Which one has the stronger fundamentals?
Both companies present favorable income statement evaluations, but LDOS demonstrates consistent revenue growth and margin stability, while FIS shows volatile revenue with a strong recent recovery in profitability. LDOS’s income growth and margin improvements appear steadier, whereas FIS benefits from higher margin percentages but faces historical fluctuations, suggesting differing risk profiles in their fundamentals.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Fidelity National Information Services, Inc. (FIS) and Leidos Holdings, Inc. (LDOS) based on their most recent fiscal year data.
| Ratios | Fidelity National Information Services, Inc. (FIS) | Leidos Holdings, Inc. (LDOS) |
|---|---|---|
| ROE | 9.24% | 28.42% |
| ROIC | 3.99% | 13.85% |
| P/E | 30.80 | 15.72 |
| P/B | 2.85 | 4.47 |
| Current Ratio | 0.85 | 1.21 |
| Quick Ratio | 0.85 | 1.13 |
| D/E (Debt to Equity) | 0.74 | 1.20 |
| Debt-to-Assets | 34.16% | 40.38% |
| Interest Coverage | 4.87 | 9.47 |
| Asset Turnover | 0.30 | 1.27 |
| Fixed Asset Turnover | 11.56 | 10.74 |
| Payout ratio | 55.17% | 16.59% |
| Dividend yield | 1.79% | 1.05% |
Interpretation of the Ratios
Fidelity National Information Services, Inc. (FIS)
FIS shows a mixed ratio profile with a strong net margin of 14.32% but weaker returns on equity (9.24%) and invested capital (3.99%), which are unfavorable. The current ratio at 0.85 indicates liquidity concerns, while asset turnover is low at 0.3. Dividend yield stands at 1.79%, supported by stable payouts; however, some caution is warranted given modest coverage by free cash flow.
Leidos Holdings, Inc. (LDOS)
LDOS displays generally strong profitability with a high ROE of 28.42% and ROIC of 13.85%, both favorable. Liquidity ratios are sound, with a current ratio of 1.21 and quick ratio of 1.13, and interest coverage is robust at 9.49. The dividend yield is 1.05%, reflecting moderate distributions aligned with stable cash flow and manageable debt levels.
Which one has the best ratios?
Leidos Holdings (LDOS) has a more favorable overall ratio profile with 50% favorable metrics and strong returns, better liquidity, and interest coverage compared to FIS. Fidelity National Information Services (FIS) presents more unfavorable ratios, especially in returns and liquidity, leading to a slightly unfavorable global evaluation.
Strategic Positioning
This section compares the strategic positioning of Fidelity National Information Services, Inc. (FIS) and Leidos Holdings, Inc. (LDOS) across market position, key segments, and exposure to technological disruption:
FIS
- Large market cap with broad IT services; faces competitive pressure in financial technology sector.
- Diverse segments: Merchant, Banking, and Capital Market Solutions driving revenue growth and scale.
- Moderate exposure to fintech disruption; provides digital and fraud management solutions.
LDOS
- Mid-sized market cap focused on defense and government IT services; competitive in specialized markets.
- Concentrated segments: Defense, Civil, and Health markets dominate revenue streams.
- Exposure to technological disruption through cybersecurity, data analytics, and cloud services.
FIS vs LDOS Positioning
FIS pursues a diversified approach across multiple financial technology segments, contributing to broad market coverage but facing intense competition. LDOS has a more concentrated focus on defense and government sectors, allowing specialization but limiting market breadth.
Which has the best competitive advantage?
Based on MOAT evaluation, LDOS holds a very favorable competitive advantage with ROIC exceeding WACC and growing profitability. FIS shows slightly unfavorable positioning, shedding value despite improving ROIC trends.
Stock Comparison
The stock price chart illustrates contrasting movements over the past 12 months, with one company showing a significant overall increase and the other a slight decline, amid varying volume trends and recent shifts in momentum.
Trend Analysis
Fidelity National Information Services, Inc. (FIS) experienced a slight bearish trend over the past year with a -0.47% price change, accompanied by accelerating downward momentum and a standard deviation of 7.01. Recent months show a modest recovery with a 2.34% gain.
Leidos Holdings, Inc. (LDOS) showed a strong bullish trend over the past year, gaining 51.37%, despite decelerating growth and higher volatility with a 20.61 standard deviation. Recent price changes have flattened slightly, registering a minor 0.18% increase.
Comparing both stocks, LDOS delivered the highest market performance over the past year with a substantial 51.37% gain, whereas FIS recorded a slight overall loss despite recent positive momentum.
Target Prices
Analysts present a solid target price consensus for Fidelity National Information Services, Inc. and Leidos Holdings, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Fidelity National Information Services, Inc. | 82 | 69 | 75.5 |
| Leidos Holdings, Inc. | 230 | 216 | 222.2 |
The consensus targets for both companies are significantly above their current prices—FIS at 63.98 and LDOS at 190.82—indicating expected upside potential according to analysts.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Fidelity National Information Services, Inc. (FIS) and Leidos Holdings, Inc. (LDOS):
Rating Comparison
FIS Rating
- Rating: C+, evaluated as Very Favorable.
- Discounted Cash Flow Score: 4, Favorable.
- ROE Score: 2, Moderate efficiency in equity profit generation.
- ROA Score: 2, Moderate asset utilization.
- Debt To Equity Score: 1, Very Unfavorable financial risk.
- Overall Score: 2, Moderate overall financial standing.
LDOS Rating
- Rating: B+, evaluated as Very Favorable.
- Discounted Cash Flow Score: 4, Favorable.
- ROE Score: 5, Very Favorable efficiency in equity profit generation.
- ROA Score: 4, Favorable asset utilization.
- Debt To Equity Score: 1, Very Unfavorable financial risk.
- Overall Score: 3, Moderate overall financial standing.
Which one is the best rated?
Based strictly on the provided data, LDOS holds a higher rating (B+) and scores better on ROE, ROA, and overall score compared to FIS. Both have equal DCF and debt-to-equity scores. Thus, LDOS is better rated overall.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for both companies:
FIS Scores
- Altman Z-Score: 0.46, in distress zone indicating high bankruptcy risk
- Piotroski Score: 8, very strong financial health
LDOS Scores
- Altman Z-Score: 4.15, in safe zone indicating low bankruptcy risk
- Piotroski Score: 8, very strong financial health
Which company has the best scores?
LDOS has a significantly higher Altman Z-Score in the safe zone, suggesting stronger financial stability. Both FIS and LDOS share an equally very strong Piotroski Score of 8.
Grades Comparison
Here is a comparison of recent stock grades from reliable grading companies for Fidelity National Information Services, Inc. and Leidos Holdings, Inc.:
Fidelity National Information Services, Inc. Grades
This table presents recent grades and rating actions for FIS from recognized financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | Maintain | Hold | 2025-11-19 |
| RBC Capital | Maintain | Outperform | 2025-11-06 |
| JP Morgan | Maintain | Overweight | 2025-11-06 |
| UBS | Maintain | Buy | 2025-11-06 |
| Truist Securities | Maintain | Hold | 2025-10-24 |
| Keefe, Bruyette & Woods | Maintain | Outperform | 2025-10-01 |
| UBS | Upgrade | Buy | 2025-09-30 |
| UBS | Maintain | Neutral | 2025-08-06 |
| Keefe, Bruyette & Woods | Maintain | Outperform | 2025-08-06 |
| Truist Securities | Maintain | Hold | 2025-07-17 |
FIS shows a consistent pattern of buy and outperform ratings with frequent holds, indicating moderate confidence and stability in analyst assessments.
Leidos Holdings, Inc. Grades
Below are the recent grades and rating changes for LDOS from reputable grading companies.
| 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 |
LDOS also exhibits a strong buy consensus but with some recent downgrades and neutral ratings, showing slightly more variability in analyst sentiment.
Which company has the best grades?
Both FIS and LDOS hold a consensus “Buy” rating, but FIS’s grades are more consistently positive with multiple “Outperform” and “Buy” ratings and fewer downgrades. LDOS shows a broader range of ratings including downgrades to “Hold,” which may indicate higher uncertainty for investors.
Strengths and Weaknesses
Below is a comparative table summarizing the key strengths and weaknesses of Fidelity National Information Services, Inc. (FIS) and Leidos Holdings, Inc. (LDOS) based on the most recent financial and operational data.
| Criterion | Fidelity National Information Services, Inc. (FIS) | Leidos Holdings, Inc. (LDOS) |
|---|---|---|
| Diversification | Moderate: Focus on Banking and Capital Market Solutions; some exposure to Merchant Solutions | High: Diverse segments including National Security, Defense, and Civil sectors |
| Profitability | Moderate: Net margin 14.3%, ROIC 4.0% below WACC (6.5%), indicating value destruction but improving | Strong: ROIC 13.9% well above WACC (5.9%), net margin 7.5%, consistent value creation |
| Innovation | Moderate: Growing ROIC but struggles with asset turnover (0.3 unfavorable) | Strong: High asset turnover (1.27 favorable) and fixed asset turnover, indicating efficient innovation deployment |
| Global presence | Focused on financial services with some international exposure | Extensive global defense and security operations with broad market reach |
| Market Share | Significant in financial technology, though facing profitability challenges | Leading position in defense and security solutions, backed by strong financials |
In summary, LDOS demonstrates a more robust financial profile with clear value creation, diversification, and operational efficiency. FIS, while showing improving profitability trends, faces challenges in capital efficiency and liquidity that investors should monitor carefully.
Risk Analysis
Below is a comparative table summarizing key risks for Fidelity National Information Services, Inc. (FIS) and Leidos Holdings, Inc. (LDOS) based on the most recent 2024 data:
| Metric | Fidelity National Information Services, Inc. (FIS) | Leidos Holdings, Inc. (LDOS) |
|---|---|---|
| Market Risk | Moderate (Beta 0.94, PE 30.8 unfavorable) | Lower (Beta 0.59, PE 15.72 neutral) |
| Debt level | Moderate (D/E 0.74 neutral, interest coverage 4.7) | Higher (D/E 1.2 unfavorable, interest coverage 9.49 favorable) |
| Regulatory Risk | Moderate, financial services compliance | Higher, defense and government contracts subject to scrutiny |
| Operational Risk | Moderate, IT service delivery and integration | Moderate, complex defense and health contracts |
| Environmental Risk | Low, typical for IT sector | Moderate, some exposure through infrastructure projects |
| Geopolitical Risk | Low, primarily US market focus | Higher, international defense exposure |
FIS shows moderate market and operational risks with a slightly unfavorable financial leverage and valuation profile, while LDOS demonstrates stronger financial health but faces higher geopolitical and regulatory risks due to its defense and government contracting exposure. The most impactful risks are LDOS’s geopolitical exposure and FIS’s valuation and debt management concerns, both critical for portfolio risk management in 2026.
Which Stock to Choose?
Fidelity National Information Services, Inc. (FIS) shows a favorable income statement with strong net margin growth and EBIT increase, but its financial ratios are slightly unfavorable overall. The company carries moderate debt and has a C+ rating with mixed score evaluations, including a distress zone Altman Z-Score.
Leidos Holdings, Inc. (LDOS) presents a favorable income evolution with consistent growth across revenue and margins. Its financial ratios are slightly favorable, despite some debt concerns, and it holds a B+ rating. The company’s Altman Z-Score is in the safe zone with a very strong Piotroski Score.
For investors, LDOS might appear more favorable for those prioritizing durable competitive advantage and financial strength, while FIS could be interpreted as a potentially improving but higher-risk option given its mixed ratios and distress signals. The choice could depend on risk tolerance and strategic focus.
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 Fidelity National Information Services, Inc. and Leidos Holdings, Inc. to enhance your investment decisions:
