KBR vs LDOS: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
LDOS is the larger of the two ($15.70B market cap): the incumbent the market prices for continued execution (9.95x forward earnings, beta 0.59). KBR is the smaller challenger ($4.59B), priced similarly on forward earnings (8.93x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
KBR vs LDOS: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | KBR | LDOS | What it tells you |
|---|---|---|---|
| Market cap | $4.59B | $15.70B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 8.93 | 9.95 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 10.92 | 11.66 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.47 | 0.59 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 42% of range | 24% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 2.80 | 2.97 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Before you buy: how KBR and LDOS affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. KBR and LDOS share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined KBR and LDOS exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does KBR (KBR) do?
KBR, Inc. is a Houston-based company that provides engineering, technical, and professional services to government and commercial clients. It operates through two core segments: Government Solutions, which supports US and allied defense, intelligence, space, logistics, and mission programs, and Sustainable Technology Solutions, which licenses proprietary industrial process technologies tied to refining, chemicals, ammonia, and emissions reduction. The government business is by far the larger of the two, accounting for roughly 72 percent of overall sales, while the technology unit carries higher margins and licensing economics.
What does Leidos Holdings (LDOS) do?
Leidos Holdings is a large government services and technology contractor that builds and runs mission systems for U.S. federal agencies and allied governments. Its work spans intelligence and digital modernization, cybersecurity, defense systems, homeland security (including airport and border screening technology), and health services such as medical exams and health IT. Roughly the bulk of its revenue comes from the U.S. government, making it a prime contractor on long-duration programs rather than a commercial-product company.
KBR vs LDOS: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- KBR drivers: Defense and mission-support demand; Planned spinoff of the government unit.
- LDOS drivers: Large backlog and revenue visibility; Margin expansion and cash generation.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: KBR depends heavily on US government budgets, appropriations timing, and contract awards, so shifts in defense or agency spending can pressure revenue. For LDOS, the overwhelming majority of Leidos revenue comes from the U.S.
KBR or LDOS: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick KBR if you believe its drivers more; LDOS if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the KBR and LDOS guides.
KBR vs LDOS: the full fundamentals
KBR. As of October 2026, KBR trades near 11 times trailing and 9 times forward earnings, a discount to many government-services and engineering peers, even after four consecutive quarterly EPS beats. Trailing revenue is roughly $7.7 billion and EV to EBITDA is about 10.5x once ~$2.8 billion of debt is counted. The pending government-business spinoff still makes standalone valuation harder to pin down, and the October 29, 2026 report is the next data point.
LDOS. In its most recent reported quarter (fiscal Q2 2026, ended July 3, 2026), Leidos posted about $4.56 billion in revenue and adjusted EPS of $3.26 against a $2.91 estimate. At about $124.52 on October 16, 2026 the stock trades near 9.9 times forward earnings and 9 times EV/EBITDA, a discount to the broader market that has widened as the shares fell about 32% year to date; the 15 covering analysts carry a mean target near $152. Q3 2026 results are due November 3, with consensus EPS near $3.04 on about $4.71 billion of revenue; figures are approximate and drawn from Yahoo Finance as of October 2026.
Headline figures (approximate, October 2026): KBR shows revenue (ttm) ~$7.7B (Q2 FY2026 up ~1.6% YoY), net income (ttm) ~$423M (net margin ~5.5%), adjusted eps (ttm) ~$3.33; Q2 FY2026 $0.99 vs ~$0.90 estimate, p/e (trailing / forward) ~10.9x / ~8.9x; LDOS shows revenue (ttm) ~$17.6B, latest quarter revenue (q2 2026) ~$4.56B (up ~7% YoY), operating margin (ttm) ~11.7%, net income (ttm) ~$1.38B.
The bottom line: KBR vs LDOS
KBR and LDOS are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined KBR and LDOS exposure against your real portfolio. It is not an investment adviser.
Wondering how KBR or LDOS fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in KBR with AI
Connect the broker you already use and ask Walnut's AI how KBR fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between KBR and LDOS?
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KBR, Inc. Leidos Holdings is a large government services and technology contractor that builds and runs mission systems for U.S. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is KBR or LDOS the better stock?
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Neither is universally better. LDOS is the larger incumbent; KBR is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, KBR or LDOS?
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On forward P/E (as of October 2026), KBR trades at 8.93x and LDOS at 9.95x, so KBR is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both KBR and LDOS?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of KBR vs LDOS?
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KBR: KBR depends heavily on US government budgets, appropriations timing, and contract awards, so shifts in defense or agency spending can pressure revenue. The planned spinoff introduces execution, tax, and dis-synergy risk, and the timeline could slip. Contingency and overseas contract runoff (such as European work) has already reduced revenue and could continue. Competition from larger services rivals can compress win rates and pricing. The energy-transition technology business is exposed to cyclical industrial capital spending and project timing. Leverage is also part of the picture: KBR carries about $2.8 billion of debt against roughly $323 million of cash, a debt-to-equity ratio near 170 percent, which narrows flexibility as the separation approaches. Shares have fallen about 17 percent over the past year, so the market is still discounting the spinoff and budget uncertainty despite consistent earnings beats. LDOS: The overwhelming majority of Leidos revenue comes from the U.S. government, so budget delays, continuing resolutions, sequestration scenarios, and shifting administration priorities can directly pressure results. Contracts are frequently recompeted, and losing a large program or seeing an award protested can create lumpy revenue swings. Margins can be squeezed on fixed-price and cost-reimbursable work if execution slips or labor costs rise. The company also faces growing competition from both traditional peers and large commercial cloud and AI firms moving into federal work. The stock's roughly 32% decline in 2026 shows how quickly sentiment toward government contractors can turn even while reported earnings hold up, and analysts have trimmed some targets (Goldman Sachs cut its target to $127 from $132 in October). Debt of about $6.6 billion against about $748 million of cash also limits flexibility. The Analogic combination adds integration and financing complexity. Finally, its modest valuation reflects limited growth, so multiple expansion is not guaranteed even if execution stays solid.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell KBR or LDOS; figures are approximate and dated (as of October 2026). Verify current data before investing.