BAH (Booz Allen Hamilton Holding Corp) vs S&P 500 Comparison

BAH

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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BAH

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

BAH

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

BAH

REL

TRI

WKL

VRSK

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Booz Allen Hamilton Holding Corp
Glance View

Economic Moat

None

Market Cap

16.6B USD

Industry

Professional Services

Booz Allen Hamilton Holding Corp. is a beacon of strategic advisory and technology consulting, rooted deeply in its over a century-long legacy since its inception in 1914. Originally hailed for its prowess in leadership and administrative consulting, the company has elegantly pivoted to align with the digital age. Its pivotal role in advising defense, intelligence, and civil government sectors underscores how Booz Allen navigates complex regulatory landscapes, offering tailored solutions that blend traditional consulting with cutting-edge technology. This vast expertise is further enhanced by an expansive workforce of skilled professionals who employ analytics, digital solutions, engineering, and cyber capabilities to address the multifaceted challenges faced by global and governmental entities. The company's revenue streams are intricately woven through its robust contract portfolio, predominantly with the U.S. government, which accounts for the lion's share of its income. Booz Allen ingeniously positions itself as a trusted partner to federal clients, helping to steer large-scale projects that involve national security, cybersecurity, and IT modernization, thereby securing perpetual demand for its wide array of services. By continuously investing in innovation and talent development, Booz Allen sustains its competitive edge in the marketplace, deftly transitioning scaled technological insights into profitable service offerings. This strategic model not only bolsters its stature as a quintessential player in management consulting but also fortifies its financial performance by ensuring a steady inflow of projects that promise substantial returns.

View BAH Analysis

BAH Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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UK		Relx PLC LSE:REL	Add
CA		Thomson Reuters Corp TSX:TRI	Add
UK	I	IHS Markit Ltd F:0M3	Add
NL		Wolters Kluwer NV AEX:WKL	Add
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CH		SGS SA SIX:SGSN	Add

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BAH

vs

S&P 500

Stocks Performance
BAH vs S&P 500

Performance Gap
BAH vs S&P 500

Performance By Year
BAH vs S&P 500

Competitors Performance
Booz Allen Hamilton Holding Corp vs Peers

Booz Allen Hamilton Holding Corp
Glance View

Company

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BAH vs S&P 500

Stocks Performance BAH vs S&P 500

Performance Gap BAH vs S&P 500

Performance By Year BAH vs S&P 500

Competitors Performance Booz Allen Hamilton Holding Corp vs Peers

Booz Allen Hamilton Holding Corp Glance View

Company

Help

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Stocks

BAH

vs

S&P 500

Stocks Performance
BAH vs S&P 500

Performance Gap
BAH vs S&P 500

Performance By Year
BAH vs S&P 500

Competitors Performance
Booz Allen Hamilton Holding Corp vs Peers

Booz Allen Hamilton Holding Corp
Glance View