Analyzing Booz Allen Hamilton (NYSE:BAH) & Alight (NYSE:ALIT)

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

Earnings & Valuation

This table compares Booz Allen Hamilton and Alight”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	$11.09 billion	0.81	$851.00 million	$6.36	11.71
Alight	$2.26 billion	0.11	-$3.10 billion	($77.18)	-0.12

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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Booz Allen Hamilton and Alight, as reported by MarketBeat.

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

Booz Allen Hamilton currently has a consensus price target of $85.62, indicating a potential upside of 15.01%. Alight has a consensus price target of $49.33, indicating a potential upside of 449.68%. Given Alight’s stronger consensus rating and higher probable upside, analysts clearly believe Alight is more favorable than Booz Allen Hamilton.

Risk & Volatility

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

Institutional and Insider Ownership

91.8% of Booz Allen Hamilton shares are held by institutional investors. Comparatively, 96.7% of Alight shares are held by institutional investors. 1.1% of Booz Allen Hamilton shares are held by company insiders. Comparatively, 2.1% of Alight shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

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

Summary

Booz Allen Hamilton beats Alight on 9 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 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.