Booz Allen Hamilton (BAH) vs. ChinaCache International (CCIH) Critical Review
Booz Allen Hamilton (NYSE: BAH) and ChinaCache International (NASDAQ:CCIH) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.
Risk and Volatility
Booz Allen Hamilton has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, ChinaCache International has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
This table compares Booz Allen Hamilton and ChinaCache International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Booz Allen Hamilton||4.52%||48.30%||8.07%|
Insider and Institutional Ownership
92.6% of Booz Allen Hamilton shares are held by institutional investors. Comparatively, 31.3% of ChinaCache International shares are held by institutional investors. 3.0% 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 company is poised for long-term growth.
This is a breakdown of current ratings and price targets for Booz Allen Hamilton and ChinaCache International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Booz Allen Hamilton||0||5||7||0||2.58|
Booz Allen Hamilton presently has a consensus target price of $40.85, suggesting a potential upside of 5.93%. Given Booz Allen Hamilton’s higher possible upside, analysts plainly believe Booz Allen Hamilton is more favorable than ChinaCache International.
Earnings & Valuation
This table compares Booz Allen Hamilton and ChinaCache International’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||0.97||$252.49 million||$1.81||21.30|
|ChinaCache International||$151.84 million||0.16||-$131.56 million||($2.96)||-0.32|
Booz Allen Hamilton has higher revenue and earnings than ChinaCache International. ChinaCache International 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.
Booz Allen Hamilton pays an annual dividend of $0.68 per share and has a dividend yield of 1.8%. ChinaCache International does not pay a dividend. Booz Allen Hamilton pays out 37.6% of its earnings in the form of a dividend. ChinaCache International has raised its dividend for 4 consecutive years.
Booz Allen Hamilton beats ChinaCache International on 13 of the 15 factors compared between the two stocks.
About Booz Allen Hamilton
Booz Allen Hamilton Holding Corporation is a holding company. The Company is a provider of management and technology, consulting and engineering services to the United States and international governments, corporations and not-for-profit organizations. The Company’s client base includes government, commercial and international clients. Its commercial clients in the United States are primarily in the financial services, healthcare and life sciences, energy, high-technology manufacturing, retail, and automotive industries. Its international clients are primarily in the Middle East, along with a presence in Southeast Asia. The Company’s functional service offerings include Systems Delivery, Engineering and Science, Cyber, Analytics and Consulting. The Company’s innovation service offerings are Digital, Cyber Futures, Next Generation Analytics and Directed Energy.
About ChinaCache International
ChinaCache International Holdings Ltd. (ChinaCache) is a holding Company. The Company provides a portfolio of services and solutions to businesses, government agencies and other enterprises to manage the scalability of their online services and applications. Its across the nation service platform, which consists of its network, servers and software, is designed to handle planned and unplanned peaks without upfront and ongoing capital outlay and other investments on the part of its customers. It provides a portfolio of content and application delivery total solutions and solutions tailored to its customers’ needs. It provides various services that are offered on a standalone basis or combined as part of its integrated solutions, such as Web Page Content Services, File Transfer Services, Rich Media Streaming Services, Guaranteed Application Services, Managed Internet Data Services, ChinaCache Cloud Services, Content Bridging Services and Mobile Internet Solutions.
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