Analyzing Booz Allen Hamilton (BAH) & ePlus (PLUS)

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

Risk & Volatility

Booz Allen Hamilton has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, ePlus has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Dividends

Booz Allen Hamilton pays an annual dividend of $0.76 per share and has a dividend yield of 2.0%. ePlus does not pay a dividend. Booz Allen Hamilton pays out 39.8% of its earnings in the form of a dividend. Booz Allen Hamilton has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of current ratings and price targets for Booz Allen Hamilton and ePlus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Booz Allen Hamilton 0 5 7 0 2.58
ePlus 0 1 1 0 2.50

Booz Allen Hamilton currently has a consensus price target of $41.25, indicating a potential upside of 7.69%. ePlus has a consensus price target of $75.00, indicating a potential downside of 1.32%. Given Booz Allen Hamilton’s stronger consensus rating and higher possible upside, analysts clearly believe Booz Allen Hamilton is more favorable than ePlus.

Profitability

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

Net Margins Return on Equity Return on Assets
Booz Allen Hamilton 4.68% 50.81% 8.24%
ePlus 4.01% 15.06% 7.34%

Insider & Institutional Ownership

93.0% of Booz Allen Hamilton shares are held by institutional investors. Comparatively, 90.0% of ePlus shares are held by institutional investors. 3.0% of Booz Allen Hamilton shares are held by insiders. Comparatively, 3.3% of ePlus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Booz Allen Hamilton and ePlus’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Booz Allen Hamilton $5.80 billion 0.96 $252.49 million $1.91 20.05
ePlus $1.33 billion 0.80 $50.55 million $4.05 18.77

Booz Allen Hamilton has higher revenue and earnings than ePlus. ePlus 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.

Summary

Booz Allen Hamilton beats ePlus on 14 of the 17 factors compared between the two stocks.

Booz Allen Hamilton Company Profile

Booz Allen Hamilton Holding Corporation is a holding company. The Company is a provider of management and technology, consulting and engineering services to the United States and international governments, corporations and not-for-profit organizations. The Company’s client base includes government, commercial and international clients. Its commercial clients in the United States are primarily in the financial services, healthcare and life sciences, energy, high-technology manufacturing, retail, and automotive industries. Its international clients are primarily in the Middle East, along with a presence in Southeast Asia. The Company’s functional service offerings include Systems Delivery, Engineering and Science, Cyber, Analytics and Consulting. The Company’s innovation service offerings are Digital, Cyber Futures, Next Generation Analytics and Directed Energy.

ePlus Company Profile

ePlus inc. is a holding company. The Company is engaged in the business of selling, leasing, financing and managing information technology. It operates through two segments: technology and financing. The technology segment sells information technology (IT) hardware products, third-party software and maintenance contracts, its own and third-party professional and managed services, and its software. The financing segment operations primarily consist of the financing of information technology equipment, software and related services. Both segments sell to commercial entities, state and local governments, government contractors and educational institutions. The Company is a provider of IT solutions, which enable organizations to optimize their IT environment and supply chain processes. It delivers and integrates IT products and software from various vendors, and provides private, hybrid, and public cloud solutions.

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