CBIZ (NYSE:CBZ) vs. Booz Allen Hamilton (NYSE:BAH) Critical Comparison

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

Insider & Institutional Ownership

91.8% of Booz Allen Hamilton shares are owned by institutional investors. Comparatively, 87.4% of CBIZ shares are owned by institutional investors. 0.9% of Booz Allen Hamilton shares are owned by company insiders. Comparatively, 5.0% of CBIZ shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Booz Allen Hamilton	7.35%	76.79%	10.95%
CBIZ	3.89%	14.00%	5.76%

Analyst Recommendations

This is a breakdown of recent recommendations for Booz Allen Hamilton and CBIZ, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Booz Allen Hamilton	4	9	2	1	2.00
CBIZ	1	1	1	1	2.50

Booz Allen Hamilton currently has a consensus price target of $101.25, suggesting a potential upside of 29.22%. CBIZ has a consensus price target of $60.00, suggesting a potential upside of 100.60%. Given CBIZ’s stronger consensus rating and higher possible upside, analysts clearly believe CBIZ is more favorable than Booz Allen Hamilton.

Volatility and Risk

Booz Allen Hamilton has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Valuation and Earnings

This table compares Booz Allen Hamilton and CBIZ”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Booz Allen Hamilton	$11.41 billion	0.83	$935.00 million	$6.73	11.64
CBIZ	$1.81 billion	0.90	$41.04 million	$1.52	19.68

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

Summary

Booz Allen Hamilton beats CBIZ on 8 of the 14 factors compared between the two stocks.

About Booz Allen Hamilton

Booz Allen Hamilton Holding Corporation provides management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services to governments, corporations, and not-for-profit organizations in the United States and internationally. It focuses on artificial intelligence services comprising of machine learning, predictive modeling, automation and decision analytics, and quantum computing. The company offers artificial intelligence, machine learning, and computer network related operations. In addition, it provides data science, engineering, visualization, and analysis related capabilities. Further, the company engages in user experience, user interface, graphic and web design, design thinking, sketching, and digital product design capabilities. Additionally, it architects and engineers help accelerate, scale, secure, and transform mission and business outcomes using the technologies and partner offering; offers software engineering in agile practices, DevSecOps, automation and Cloud, and Low/No Code Platform engineering; systems and digital engineering; and tech strategy and product management. Booz Allen Hamilton Holding Corporation was founded in 1914 and is headquartered in McLean, Virginia.

About CBIZ

CBIZ, Inc. provides financial, insurance, and advisory services in the United States and Canada. It operates through Financial Services, Benefits and Insurance Services, and National Practices segments. The Financial Services segment offers accounting and tax, financial advisory, valuation, risk and advisory, and government healthcare consulting services. The Benefits and Insurance Services provides employee benefits consulting, payroll/human capital management, property and casualty insurance, and retirement and investment services. The National Practices segment offers information technology managed networking and hardware, and health care consulting services. The company primarily serves small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. CBIZ, Inc. was incorporated in 1987 and is headquartered in Independence, Ohio.