Leidos Holdings, Inc. (LDOS) vs Meta Platforms, Inc. (META): Which Is the Better Buy in 2026?
As of 2026-06-21, LDOS is undervalued at $107, with a DCF intrinsic value of $205 and a margin of safety of 48%. META is fairly valued at $577, with an intrinsic value of $679 and a margin of safety of 15%. Of the two, LDOS has the wider margin of safety.
Rewards
- ★Free cash flow has grown at a 23.5% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Each dollar of retained earnings has created $3.53 of earning power — management is an exceptional capital allocator.
- ★Management has timed buybacks well — 3 out of 4 years showed value-accretive repurchases.
- ★Meta Platforms, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 81.9% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Meta Platforms, Inc. scores 80/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
Risks
- ⚠Gross margin of 17.9% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠PEG ratio of 2.46 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠10 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.
- ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
- ⚠Insiders have sold $6.7M worth of stock in the past 3 months — significant insider liquidation.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $107?
The market implies +1.1% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +1.0%, reflecting heavy growth investment expected to generate future returns.
What growth rate is the market pricing in at $577?
The market implies +10.4% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +14.1%, reflecting heavy growth investment expected to generate future returns.
Economic Moat Score
Learn more →Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.
Wide moat driven primarily by roic consistency. Reinvestment Efficiency is the area most vulnerable to competitive pressure.
Forensic Accounting
Learn more →M-Score Trend
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pessimistic — investigate whether fears are temporary or structural"
"Market is pessimistic — investigate whether fears are temporary or structural"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: LDOS vs META
Is Leidos Holdings, Inc. or Meta Platforms, Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, LDOS trades at a 47.7% margin of safety (intrinsic value $205 vs. price $107), compared to META's 14.9% margin of safety (intrinsic $679 vs. $577).
Which stock has a wider economic moat, Leidos Holdings, Inc. or Meta Platforms, Inc.?▼
META scores 80/100 (Wide moat), while LDOS scores 69/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Which company has better free cash flow, Leidos Holdings, Inc. or Meta Platforms, Inc.?▼
Leidos Holdings, Inc. (LDOS) generates a 12.1% free cash flow yield, compared to Meta Platforms, Inc.'s 3.1%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.
Which stock has higher return on invested capital, Leidos Holdings, Inc. or Meta Platforms, Inc.?▼
META earns 20.9% ROIC versus LDOS's 13.9%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.
Which dividend is safer, Leidos Holdings, Inc.'s or Meta Platforms, Inc.'s?▼
LDOS's dividend earns a safety score of 94/100 (Very Safe), compared to META's 88/100 (Very Safe). LDOS has raised its dividend for 3 consecutive years.