MMS vs LDOS

For growth investors, Leidos Holdings, Inc.

(LDOS) is the stronger pick with 3. 1% revenue growth year-over-year, versus 2. 4% for Maximus, Inc. (MMS). Maximus, Inc. (MMS) offers the better valuation at 11. 6x trailing P/E (7. 8x forward), making it the more compelling value choice. Analysts rate Maximus, Inc. (MMS) a "Buy" — based on 16 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Maximus, Inc.

(MMS) is the cheapest at 11. 6x versus Leidos Holdings, Inc. at 12. 1x. On forward P/E, Maximus, Inc. is actually cheaper at 7. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Leidos Holdings, Inc. wins at 0. 54x versus Maximus, Inc. 's 0. 77x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Leidos Holdings, Inc.

(LDOS) delivered a total return of +37. 1%, compared to -24. 6% for Maximus, Inc. (MMS). Over 10 years, the gap is even starker: LDOS returned +223. 8% versus MMS's +39. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Leidos Holdings, Inc.

(LDOS) is the lower-risk stock at 0. 42β versus Maximus, Inc. 's 0. 72β — meaning MMS is approximately 71% more volatile than LDOS relative to the S&P 500. On balance sheet safety, Maximus, Inc. (MMS) carries a lower debt/equity ratio of 86% versus 119% for Leidos Holdings, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Leidos Holdings, Inc.

(LDOS) is pulling ahead at 3. 1% versus 2. 4% for Maximus, Inc. (MMS). On earnings-per-share growth, the picture is similar: Leidos Holdings, Inc. grew EPS 20. 7% year-over-year, compared to 10. 4% for Maximus, Inc.. Over a 3-year CAGR, LDOS leads at 6. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Leidos Holdings, Inc.

(LDOS) is the more profitable company, earning 8. 5% net margin versus 5. 9% for Maximus, Inc. — meaning it keeps 8. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LDOS leads at 12. 3% versus 10. 6% for MMS. At the gross margin level — before operating expenses — MMS leads at 23. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Leidos Holdings, Inc. (LDOS) is the more undervalued stock at a PEG of 0. 54x versus Maximus, Inc. 's 0. 77x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Maximus, Inc. (MMS) trades at 7. 8x forward P/E versus 11. 1x for Leidos Holdings, Inc. — 3. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MMS: 72. 0% to $110. 00.

All stocks in this comparison pay dividends.

Maximus, Inc. (MMS) offers the highest yield at 1. 9%, versus 1. 2% for Leidos Holdings, Inc. (LDOS).

For long-horizon retirement investors, Leidos Holdings, Inc.

(LDOS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 42), 1. 2% yield, +223. 8% 10Y return). Both have compounded well over 10 years (LDOS: +223. 8%, MMS: +39. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (MMS (Industrials) and LDOS (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.