Financial Contrast: Alight (NYSE:ALIT) and Booz Allen Hamilton (NYSE:BAH)

Alight (NYSE:ALIT) and Booz Allen Hamilton (NYSE:BAH) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

96.7% of Alight shares are owned by institutional investors. Comparatively, 91.8% of Booz Allen Hamilton shares are owned by institutional investors. 2.1% of Alight shares are owned by company insiders. Comparatively, 1.1% of Booz Allen Hamilton shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alight	$2.26 billion	0.11	-$3.10 billion	($77.18)	-0.12
Booz Allen Hamilton	$11.22 billion	0.80	$851.00 million	$6.36	11.70

Booz Allen Hamilton has higher revenue and earnings than Alight. Alight 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 Alight and Booz Allen Hamilton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alight	-90.90%	16.05%	4.38%
Booz Allen Hamilton	7.01%	76.71%	11.48%

Risk & Volatility

Alight has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Booz Allen Hamilton has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alight	2	3	3	0	2.12
Booz Allen Hamilton	4	7	4	0	2.00

Alight presently has a consensus price target of $49.33, suggesting a potential upside of 434.20%. Booz Allen Hamilton has a consensus price target of $85.62, suggesting a potential upside of 15.09%. Given Alight’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Alight is more favorable than Booz Allen Hamilton.

Summary

Booz Allen Hamilton beats Alight on 9 of the 14 factors compared between the two stocks.

About Alight

Alight, Inc. provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software. The Professional Services segment offers consulting offerings, such as cloud advisory, deployment, and optimization services for cloud platforms. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its solutions enable employees to enrich their health, wealth, and wellbeing that helps organizations achieve a high-performance culture. Alight, Inc. was founded in 2020 and is based in Lincolnshire, Illinois.

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.