Head-To-Head Contrast: Booz Allen Hamilton (NYSE:BAH) versus Insperity (NYSE:NSP)

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

Volatility and Risk

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Insperity	0.04%	18.27%	0.45%
Booz Allen Hamilton	7.14%	75.00%	11.41%

Earnings and Valuation

This table compares Insperity and Booz Allen Hamilton”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insperity	$6.81 billion	0.28	-$7.00 million	$0.08	635.94
Booz Allen Hamilton	$10.98 billion	0.96	$851.00 million	$6.44	13.87

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

Dividends

Insperity pays an annual dividend of $2.40 per share and has a dividend yield of 4.7%. Booz Allen Hamilton pays an annual dividend of $2.36 per share and has a dividend yield of 2.6%. Insperity pays out 3,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Booz Allen Hamilton pays out 36.6% of its earnings in the form of a dividend. Insperity has increased its dividend for 14 consecutive years and Booz Allen Hamilton has increased its dividend for 14 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Insperity and Booz Allen Hamilton, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insperity	2	2	1	0	1.80
Booz Allen Hamilton	3	7	5	0	2.13

Insperity currently has a consensus price target of $53.33, indicating a potential upside of 4.83%. Booz Allen Hamilton has a consensus price target of $89.29, indicating a potential downside of 0.07%. Given Insperity’s higher probable upside, research analysts clearly believe Insperity is more favorable than Booz Allen Hamilton.

Insider and Institutional Ownership

93.4% of Insperity shares are held by institutional investors. Comparatively, 91.8% of Booz Allen Hamilton shares are held by institutional investors. 5.8% of Insperity shares are held by company insiders. Comparatively, 1.1% of Booz Allen Hamilton shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Booz Allen Hamilton beats Insperity on 10 of the 16 factors compared between the two stocks.

About Insperity

Insperity, Inc. engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses primarily in the United States. It offers its HR services through its workforce optimization and workforce synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services. The company also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; people management services; and employer liability management services, as well as solutions for middle market. In addition, it offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; integrated payroll; benefits administration; HR administration and employee onboarding; time and attendance; performance management; reporting and analytics; recruiting; employment screening; retirement; and insurance services. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas.

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.