Booz Allen Hamilton (NYSE: BAH) and BlackRock Capital Investment (NASDAQ:BKCC) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.
Institutional and Insider Ownership
93.6% of Booz Allen Hamilton shares are held by institutional investors. Comparatively, 33.6% of BlackRock Capital Investment shares are held by institutional investors. 3.0% of Booz Allen Hamilton shares are held by insiders. Comparatively, 1.3% of BlackRock Capital Investment shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Booz Allen Hamilton and BlackRock Capital Investment’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Booz Allen Hamilton||$5.80 billion||0.99||$252.49 million||$1.75||22.54|
|BlackRock Capital Investment||$97.33 million||4.62||$20.90 million||$0.73||8.42|
Booz Allen Hamilton has higher revenue and earnings than BlackRock Capital Investment. BlackRock Capital Investment 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.
This table compares Booz Allen Hamilton and BlackRock Capital Investment’s 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%|
|BlackRock Capital Investment||21.47%||9.34%||6.17%|
This is a summary of recent recommendations and price targets for Booz Allen Hamilton and BlackRock Capital Investment, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Booz Allen Hamilton||0||5||6||0||2.55|
|BlackRock Capital Investment||0||1||1||0||2.50|
Booz Allen Hamilton presently has a consensus price target of $41.50, indicating a potential upside of 5.21%. BlackRock Capital Investment has a consensus price target of $7.25, indicating a potential upside of 17.89%. Given BlackRock Capital Investment’s higher possible upside, analysts plainly believe BlackRock Capital Investment is more favorable than Booz Allen Hamilton.
Volatility & Risk
Booz Allen Hamilton has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, BlackRock Capital Investment has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.
Booz Allen Hamilton pays an annual dividend of $0.76 per share and has a dividend yield of 1.9%. BlackRock Capital Investment pays an annual dividend of $0.72 per share and has a dividend yield of 11.7%. Booz Allen Hamilton pays out 43.4% of its earnings in the form of a dividend. BlackRock Capital Investment pays out 98.6% 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 has increased its dividend for 5 consecutive years.
Booz Allen Hamilton beats BlackRock Capital Investment on 13 of the 17 factors compared between the two stocks.
About Booz Allen Hamilton
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; intelligence analysis, which include source analysis; and tradecraft, data science, and machine intelligence. In addition, the company designs, develops, and implements secure solutions and scalable systems, as well as offers software development services; and delivers technical solutions in the areas of command, control, communications, computers, intelligence, surveillance, and reconnaissance. Further, it provides cyber risk management solutions, such as prevention, detection, and cost effectiveness. Booz Allen Hamilton Holding Corporation was founded in 1914 and is headquartered in McLean, Virginia.
About BlackRock Capital Investment
BlackRock Capital Investment Corporation is an externally-managed, non-diversified, closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through its debt and equity investments. The Company provides middle-market companies with a range of financing solutions, including senior and junior secured, unsecured and subordinated debt securities and loans, and equity securities. Its targeted investment typically ranges between $10 million and $50 million. The Company generally seeks to invest in companies that operate in a range of industries. The Company’s investments are in senior and junior secured, unsecured and subordinated loans to the United States private and certain public middle-market companies. The Company’s investment advisor is BlackRock Advisors, LLC.
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