Concentrix (NASDAQ:CNXC) and Booz Allen Hamilton (NYSE:BAH) Head-To-Head Analysis

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

Insider & Institutional Ownership

91.8% of Booz Allen Hamilton shares are owned by institutional investors. Comparatively, 90.3% of Concentrix shares are owned by institutional investors. 1.1% of Booz Allen Hamilton shares are owned by insiders. Comparatively, 0.9% of Concentrix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Booz Allen Hamilton	3	7	5	0	2.13
Concentrix	1	2	3	0	2.33

Booz Allen Hamilton presently has a consensus price target of $89.71, suggesting a potential upside of 3.35%. Concentrix has a consensus price target of $33.50, suggesting a potential upside of 2.26%. Given Booz Allen Hamilton’s higher possible upside, equities analysts plainly believe Booz Allen Hamilton is more favorable than Concentrix.

Earnings & Valuation

This table compares Booz Allen Hamilton and Concentrix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Booz Allen Hamilton	$11.22 billion	0.92	$851.00 million	$6.44	13.48
Concentrix	$9.97 billion	0.20	-$1.28 billion	($38.90)	-0.84

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

Dividends

Booz Allen Hamilton pays an annual dividend of $2.36 per share and has a dividend yield of 2.7%. Concentrix pays an annual dividend of $1.48 per share and has a dividend yield of 4.5%. Booz Allen Hamilton pays out 36.6% of its earnings in the form of a dividend. Concentrix pays out -3.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Booz Allen Hamilton has raised its dividend for 14 consecutive years and Concentrix has raised its dividend for 3 consecutive years. Concentrix is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Booz Allen Hamilton has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Concentrix has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Booz Allen Hamilton	7.14%	75.00%	11.41%
Concentrix	-23.99%	25.00%	6.07%

Summary

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

About Booz Allen Hamilton

Booz Allen Hamilton is a management and technology consulting firm that helps government and commercial clients address complex operational and technical challenges. Its services include strategy and organizational consulting, digital transformation, systems engineering, data analytics, artificial intelligence, and cybersecurity. The company has a substantial focus on U.S. federal government work, supporting defense, intelligence, and civilian agencies on national security and public-sector missions.

About Concentrix

Concentrix Corporation is a global technology and services company that helps businesses manage customer interactions and improve their operations. Its services include customer care, technical support, sales, back-office processing, and digital transformation, supported by technologies such as analytics, automation, and artificial intelligence. The company serves clients across a range of industries, including technology, financial services, healthcare, retail, and communications. It operates in more than 70 countries, providing services to customers and businesses across multiple regions.