Contrasting Super League Enterprise (NASDAQ:SLE) & Leidos (NYSE:LDOS)

Leidos (NYSE:LDOS) and Super League Enterprise (NASDAQ:SLE) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Dividends

Leidos pays an annual dividend of $1.52 per share and has a dividend yield of 0.9%. Super League Enterprise pays an annual dividend of $0.46 per share and has a dividend yield of 50.8%. Leidos pays out 65.5% of its earnings in the form of a dividend. Super League Enterprise pays out -5.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Super League Enterprise is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

76.1% of Leidos shares are owned by institutional investors. Comparatively, 2.1% of Super League Enterprise shares are owned by institutional investors. 1.0% of Leidos shares are owned by company insiders. Comparatively, 5.4% of Super League Enterprise shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Leidos and Super League Enterprise, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leidos	0	2	10	0	2.83
Super League Enterprise	0	0	2	0	3.00

Leidos presently has a consensus price target of $166.92, indicating a potential downside of 0.69%. Super League Enterprise has a consensus price target of $3.00, indicating a potential upside of 231.09%. Given Super League Enterprise’s stronger consensus rating and higher possible upside, analysts clearly believe Super League Enterprise is more favorable than Leidos.

Volatility and Risk

Leidos has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Super League Enterprise has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500.

Valuation and Earnings

This table compares Leidos and Super League Enterprise”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leidos	$16.01 billion	1.42	$199.00 million	$2.32	72.44
Super League Enterprise	$25.03 million	0.26	-$30.33 million	($8.88)	-0.10

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

Profitability

This table compares Leidos and Super League Enterprise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leidos	2.72%	28.40%	9.59%
Super League Enterprise	-95.78%	-254.70%	-110.76%

Summary

Leidos beats Super League Enterprise on 10 of the 16 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 Super League Enterprise

Super League Enterprise, Inc. builds and operates networks of games, monetization tools, and content channels across metaverse gaming platforms that empower developers, energize players, and entertain fans. The company's solutions provide access to an audience consisting of players in the metaverse environments, fans of various gaming influencers, and viewers of gameplay content across social media and digital video platforms. The company's platform includes access to in-game communities, a metaverse advertising platform, and a network of highly viewed channels and original shows on Instagram, TikTok, Snap, YouTube, and Twitch, as well as cloud-based livestream production tools and an esports invitational tournament series. Its properties also deliver opportunities for brands and advertisers to achieve insights and marketing outcomes with gamers of various ages. The company was formerly known as Super League Gaming, Inc. and changed its name to Super League Enterprise, Inc. in September 2023. Super League Enterprise, Inc. was incorporated in 2014 and is headquartered in Santa Monica, California.