PSN vs SAIC vs LDOS

For growth investors, Leidos Holdings, Inc.

(LDOS) is the stronger pick with 3. 1% revenue growth year-over-year, versus -5. 7% for Parsons Corporation (PSN). Leidos Holdings, Inc. (LDOS) offers the better valuation at 11. 8x trailing P/E (11. 1x forward), making it the more compelling value choice. Analysts rate Parsons Corporation (PSN) a "Buy" — based on 17 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, Leidos Holdings, Inc.

(LDOS) is the cheapest at 11. 8x versus Parsons Corporation at 23. 3x. On forward P/E, Science Applications International Corporation is actually cheaper at 9. 3x — notably different from the trailing picture, reflecting expected earnings growth. 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 Parsons Corporation's 0. 87x — 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 +33. 4%, compared to +12. 4% for Science Applications International Corporation (SAIC). Over 10 years, the gap is even starker: LDOS returned +223. 8% versus PSN's +70. 4%. 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), Science Applications International Corporation (SAIC) is the lower-risk stock at 0.

26β versus Parsons Corporation's 0. 83β — meaning PSN is approximately 212% more volatile than SAIC relative to the S&P 500. On balance sheet safety, Science Applications International Corporation (SAIC) carries a lower debt/equity ratio of 14% 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 -5. 7% for Parsons Corporation (PSN). On earnings-per-share growth, the picture is similar: Leidos Holdings, Inc. grew EPS 20. 7% year-over-year, compared to 3. 8% for Parsons Corporation. Over a 3-year CAGR, PSN leads at 14. 9% 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 3. 8% for Parsons Corporation — 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 6. 6% for PSN. At the gross margin level — before operating expenses — PSN leads at 22. 5%, 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 Parsons Corporation's 0. 87x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Science Applications International Corporation (SAIC) trades at 9. 3x forward P/E versus 15. 5x for Parsons Corporation — 6. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PSN: 69. 4% to $86. 80.

In this comparison, SAIC (1.

6% yield), LDOS (1. 2% yield) pay a dividend. PSN does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Science Applications International Corporation (SAIC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

26), 1. 6% yield, +104. 4% 10Y return). Both have compounded well over 10 years (SAIC: +104. 4%, PSN: +70. 4%), 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 (PSN (Industrials) and SAIC (Technology) and LDOS (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: PSN is a small-cap quality compounder stock; SAIC is a small-cap deep-value stock; LDOS is a mid-cap deep-value stock. SAIC, LDOS pay a dividend while PSN does not, making them suitable for different income and tax situations. 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.