LDOS vs. NOW: Which Stock Is the Better Value Option?

Core Insights - Leidos (LDOS) is currently viewed as a more attractive investment compared to ServiceNow (NOW) for value investors due to its stronger earnings outlook and better valuation metrics [3][6]. Valuation Metrics - Leidos has a forward P/E ratio of 16.22, significantly lower than ServiceNow's forward P/E of 54.27, indicating that LDOS may be undervalued [5]. - The PEG ratio for Leidos is 2.11, while ServiceNow's PEG ratio is 2.28, suggesting that LDOS offers a better balance between price and expected earnings growth [5]. - Leidos has a P/B ratio of 4.93 compared to ServiceNow's P/B of 17.34, further highlighting the relative undervaluation of LDOS [6]. Investment Ratings - Leidos holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while ServiceNow has a Zacks Rank of 3 (Hold), suggesting a less favorable outlook [3][6]. - The Value grade for Leidos is B, whereas ServiceNow has received an F, reinforcing the notion that LDOS is the superior value option at this time [6].