Navigant Consulting (NCI) vs. Booz Allen Hamilton (BAH) Critical Comparison

Navigant Consulting (NYSE: NCI) and Booz Allen Hamilton (NYSE:BAH) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Dividends

Booz Allen Hamilton pays an annual dividend of $0.76 per share and has a dividend yield of 1.8%. Navigant Consulting does not pay a dividend. Booz Allen Hamilton pays out 43.4% of its earnings in the form of a dividend. Booz Allen Hamilton has raised its dividend for 5 consecutive years.



Institutional and Insider Ownership

92.9% of Navigant Consulting shares are held by institutional investors. Comparatively, 93.6% of Booz Allen Hamilton shares are held by institutional investors. 2.3% of Navigant Consulting shares are held by insiders. Comparatively, 3.0% of Booz Allen Hamilton shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Navigant Consulting and Booz Allen Hamilton’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Navigant Consulting $1.03 billion 1.04 $74.95 million $1.09 21.81
Booz Allen Hamilton $5.80 billion 1.04 $252.49 million $1.75 23.82

Booz Allen Hamilton has higher revenue and earnings than Navigant Consulting. Navigant Consulting is trading at a lower price-to-earnings ratio than Booz Allen Hamilton, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Navigant Consulting and Booz Allen Hamilton’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navigant Consulting 7.29% 7.95% 4.91%
Booz Allen Hamilton 4.68% 50.81% 8.24%

Risk and Volatility

Navigant Consulting has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Booz Allen Hamilton has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Navigant Consulting and Booz Allen Hamilton, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navigant Consulting 0 0 2 0 3.00
Booz Allen Hamilton 0 4 6 0 2.60

Navigant Consulting presently has a consensus price target of $25.00, suggesting a potential upside of 5.17%. Booz Allen Hamilton has a consensus price target of $41.93, suggesting a potential upside of 0.61%. Given Navigant Consulting’s stronger consensus rating and higher probable upside, equities analysts clearly believe Navigant Consulting is more favorable than Booz Allen Hamilton.

Summary

Booz Allen Hamilton beats Navigant Consulting on 13 of the 17 factors compared between the two stocks.

Navigant Consulting Company Profile

Navigant Consulting, Inc. provides professional services to corporate executives and senior management, corporate counsel, law firms, corporate boards, special committees, and governmental agencies worldwide. It operates through four segments: Healthcare; Energy; Financial Services Advisory and Compliance; and Disputes, Forensics and Legal Technology. The Healthcare segment offers consulting and business process management services to healthcare providers, payers, and life sciences companies. This segment helps clients respond to market legislative changes, such as the shift to an outcome and value-based reimbursements model, ongoing industry consolidation and reorganization, Medicaid expansion, the implementation of a new electronic health records system, and product planning and commercialization expertise. The Energy segment provides advisory services to utilities, governmental agencies, manufacturers, and investors. This segment offers its clients with advisory solutions in business strategy and planning, distributed energy resources and renewables, energy efficiency and demand response, and grid modernization, as well as various benchmarking and research services. The Financial Services Advisory and Compliance segment provides strategic, operational, valuation, risk management, investigative, and compliance advisory services to clients primarily in the financial services industry, including financial and insurance institutions. This segment also offers anti-corruption solutions and anti-money laundering consulting, litigation support, and tax compliance and valuation services. The Disputes, Forensics and Legal Technology segment provides professional services, including accounting, regulatory, construction, and computer forensic, as well as valuation and economic analysis. Navigant Consulting, Inc. was founded in 1983 and is headquartered in Chicago, Illinois.

Booz Allen Hamilton Company Profile

Booz Allen Hamilton Holding Corporation provides management and technology consulting, engineering, analytics, digital, mission operations, and cyber solutions to governments, corporations, and not-for-profit organizations in the United States and internationally. The company offers consulting solutions for various domains, business strategies, human capital, and operations. It also provides analytics services, which focuses on delivering transformational solutions in the areas of decision analytics, including operations research and cost estimation; intelligence analysis, which include source analysis; and tradecraft, data science, and machine intelligence. In addition, the company designs, develops, and implements secure solutions and scalable systems, as well as offers software development services; and delivers technical solutions in the areas of command, control, communications, computers, intelligence, surveillance, and reconnaissance. Further, it provides cyber risk management solutions, such as prevention, detection, and cost effectiveness. Booz Allen Hamilton Holding Corporation was founded in 1914 and is headquartered in McLean, Virginia.

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