Booz Allen Hamilton Holding Corporation (NYSE:BAH) is a management and information technology consulting firm, primarily serving the U.S. government across defense, intelligence, and civil markets. BAH competes with companies such as Leidos Holdings, Inc. (LDOS), CACI International Inc (CACI), Science Applications International Corporation (SAIC), Huntington Ingalls Industries, Inc. (HII), and CDW Corporation (CDW).
BAH's Return on Invested Capital (ROIC) is 18.09%, significantly higher than its Weighted Average Cost of Capital (WACC) of 5.00%. This results in a ROIC to WACC ratio of 3.62, indicating efficient capital utilization. BAH's ability to generate returns well above its cost of capital highlights its strong profitability and effective investment strategies.
Comparatively, Leidos Holdings, Inc. (LDOS) has a ROIC of 14.77% and a WACC of 5.98%, resulting in a ROIC to WACC ratio of 2.47. While LDOS is performing well, it does not match BAH's capital efficiency. CACI International Inc (CACI) shows a ROIC of 8.62% against a WACC of 6.12%, with a ratio of 1.41, indicating less effective capital utilization.
Science Applications International Corporation (SAIC) has a ROIC of 11.27% and a WACC of 4.84%, leading to a ROIC to WACC ratio of 2.33. Although SAIC is performing better than some peers, it still falls short of BAH's efficiency. Huntington Ingalls Industries, Inc. (HII) has the lowest ratio of 0.94, with a ROIC of 4.79% and a WACC of 5.12%, suggesting its returns barely cover its cost of capital.
CDW Corporation (CDW) presents a ROIC of 12.25% and a WACC of 7.35%, resulting in a ROIC to WACC ratio of 1.67. While CDW is generating returns above its cost of capital, it is not as efficient as BAH. Overall, BAH's superior ROIC to WACC ratio makes it an attractive option for investors seeking strong financial performance.
