Pharma Bio Serv (OTCMKTS:PBSV) and Booz Allen Hamilton (NYSE:BAH) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.
Insider & Institutional Ownership
91.0% of Booz Allen Hamilton shares are owned by institutional investors. 51.2% of Pharma Bio Serv shares are owned by insiders. Comparatively, 2.6% of Booz Allen Hamilton shares are owned 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.
Pharma Bio Serv has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Booz Allen Hamilton has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
Pharma Bio Serv pays an annual dividend of $0.08 per share and has a dividend yield of 8.4%. Booz Allen Hamilton pays an annual dividend of $0.92 per share and has a dividend yield of 1.3%. Pharma Bio Serv pays out -160.0% of its earnings in the form of a dividend. Booz Allen Hamilton pays out 33.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Booz Allen Hamilton has raised its dividend for 6 consecutive years. Pharma Bio Serv is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent recommendations for Pharma Bio Serv and Booz Allen Hamilton, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pharma Bio Serv||0||0||0||0||N/A|
|Booz Allen Hamilton||1||3||7||0||2.55|
Booz Allen Hamilton has a consensus price target of $66.89, suggesting a potential downside of 8.96%. Given Booz Allen Hamilton’s higher probable upside, analysts clearly believe Booz Allen Hamilton is more favorable than Pharma Bio Serv.
Earnings and Valuation
This table compares Pharma Bio Serv and Booz Allen Hamilton’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pharma Bio Serv||$17.80 million||1.25||$1.27 million||($0.05)||-19.00|
|Booz Allen Hamilton||$6.70 billion||1.54||$418.53 million||$2.76||26.62|
Booz Allen Hamilton has higher revenue and earnings than Pharma Bio Serv. Pharma Bio Serv 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 Pharma Bio Serv and Booz Allen Hamilton’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pharma Bio Serv||26.19%||11.85%||9.64%|
|Booz Allen Hamilton||6.27%||59.44%||10.28%|
Booz Allen Hamilton beats Pharma Bio Serv on 12 of the 16 factors compared between the two stocks.
About Pharma Bio Serv
Pharma-Bio Serv, Inc. operates as a compliance and technology transfer services consulting firm the United States, Europe, and Brazil markets. It provides compliance consulting services to the pharmaceutical, chemical, biotechnology, medical device, cosmetic, food industries, and allied products in Puerto Rico, the United States, Europe, and Brazil. The company's technical consulting services comprise regulatory compliance, validation, technology transfer, engineering, project management, and process support. Pharma-Bio Serv, Inc. was founded in 1993 and is headquartered in Dorado, Puerto Rico.
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; 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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