Capgemini (OTCMKTS:CGEMY) and Booz Allen Hamilton (NYSE:BAH) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.
Valuation and Earnings
This table compares Capgemini 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|
|Capgemini||$15.59 billion||1.37||$862.13 million||N/A||N/A|
|Booz Allen Hamilton||$6.70 billion||1.40||$418.53 million||$2.76||24.25|
Capgemini pays an annual dividend of $0.27 per share and has a dividend yield of 1.1%. Booz Allen Hamilton pays an annual dividend of $0.92 per share and has a dividend yield of 1.4%. Booz Allen Hamilton pays out 33.3% of its earnings in the form of a dividend. Booz Allen Hamilton has raised its dividend for 6 consecutive years. Booz Allen Hamilton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Capgemini and Booz Allen Hamilton’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Booz Allen Hamilton||6.24%||60.67%||10.54%|
Volatility & Risk
Capgemini has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Booz Allen Hamilton has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.
Insider and Institutional Ownership
0.2% of Capgemini shares are held by institutional investors. Comparatively, 94.5% of Booz Allen Hamilton shares are held by institutional investors. 2.6% of Booz Allen Hamilton shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Capgemini and Booz Allen Hamilton, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Booz Allen Hamilton||1||3||8||0||2.58|
Booz Allen Hamilton has a consensus target price of $59.22, suggesting a potential downside of 11.52%. Given Booz Allen Hamilton’s stronger consensus rating and higher probable upside, analysts plainly believe Booz Allen Hamilton is more favorable than Capgemini.
Booz Allen Hamilton beats Capgemini on 11 of the 15 factors compared between the two stocks.
Capgemini Company Profile
Capgemini SE provides consulting, technology, and digital transformation services. It addresses clients' opportunities in the world of cloud, digital, and platforms, as well as enables organizations to realize business ambitions through an array of services from strategy to operations. The company's Consulting Services segment offers strategy and transformation consulting services primarily in digital transformation that enhance the performance of organizations based on intimate client relationships, and the knowledge of client industries and processes. Its Technology & Engineering Services segment provides assistance and support to internal IT teams of client companies. The company's Application Services segment designs, develops, implements, and maintains IT applications, including system integration and application maintenance services. Its Other Managed Services segment integrates, manages, and/or develops client's IT infrastructure systems, as well as provides transaction, on-demand, and/or business process outsourcing services. The company also provides financial services, as well as manages the business activities of clients in financial sector. Capgemini SE serves various industries, including aerospace and defense, automotive, consumer products and retail, electronics and high tech, government and public sector, healthcare and life sciences, insurance, media and entertainment, natural resources, telecom, transportation and distribution, and utilities. The company has operations in North America, France, the United Kingdom, Ireland, rest of Europe, Asia-Pacific, and Latin America. Capgemini SE was founded in 1967 and is based in Paris, France.
Booz Allen Hamilton Company Profile
Booz Allen Hamilton Holding Corporation provides management and technology consulting, engineering, analytics, digital, mission operations, and cyber solutions to governments, corporations, and not-for-profit organizations in the United States and internationally. The company offers consulting solutions for various domains, business strategies, human capital, and operations. It also provides analytics services, which focuses on delivering transformational solutions in the areas of decision analytics, including operations research and cost estimation; automation; and data science, which include predictive modeling and machine learning, as well as new or emerging areas, such as deep learning and artificial intelligence. In addition, the company delivers engineering services and solutions to define, develop, implement, sustain, and modernize complex physical systems, such as the launch and test range system for the U.S. air force space command or the flush air data systems for NASA; and provides cyber risk management solutions, such as prevention, detection, and cost effectiveness. Further, it offers technical solutions in the areas of cybersecurity, command, control, communications, computers, intelligence, surveillance, and reconnaissance. Booz Allen Hamilton Holding Corporation was founded in 1914 and is headquartered in McLean, Virginia.
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