Critical Analysis: Leidos (NYSE:LDOS) versus Brand Engagement Network (NASDAQ:BNAI)

Leidos (NYSE:LDOS) and Brand Engagement Network (NASDAQ:BNAI) are both aerospace companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings for Leidos and Brand Engagement Network, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leidos	0	2	10	0	2.83
Brand Engagement Network	0	0	0	0	N/A

Leidos presently has a consensus price target of $132.42, indicating a potential upside of 6.99%. Given Leidos’ higher probable upside, research analysts clearly believe Leidos is more favorable than Brand Engagement Network.

Risk and Volatility

Leidos has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Brand Engagement Network has a beta of -0.05, indicating that its stock price is 105% less volatile than the S&P 500.

Insider & Institutional Ownership

76.1% of Leidos shares are held by institutional investors. Comparatively, 15.8% of Brand Engagement Network shares are held by institutional investors. 1.0% of Leidos shares are held by company insiders. Comparatively, 62.9% of Brand Engagement Network shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Leidos and Brand Engagement Network’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leidos	$15.44 billion	1.08	$199.00 million	$1.42	87.16
Brand Engagement Network	N/A	N/A	-$6.88 million	N/A	N/A

Leidos has higher revenue and earnings than Brand Engagement Network.

Profitability

This table compares Leidos and Brand Engagement Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leidos	1.29%	22.92%	7.80%
Brand Engagement Network	N/A	-19.90%	-16.34%

Summary

Leidos beats Brand Engagement Network on 9 of the 10 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 Brand Engagement Network

Brand Engagement Network, Inc. provides conversational AI assistants. The company offers security-focused, multimodal communication, and human-like assistants. Its AI assistants are built on proprietary natural language processing, anomaly detection, multisensory awareness, sentiment, and environmental analysis, as well as real-time individuation and personalization capabilities. It serves the automotive, healthcare, and other industries through direct sales force and channel partners. Brand Engagement Network, Inc. was formerly known as Blockchain Exchange Network Inc. and changed its name to Brand Engagement Network, Inc. in April 2023. The company was founded in 2018 and is based in Jackson, Wyoming.