PSN vs BAH

For growth investors, Booz Allen Hamilton Holding Corporation (BAH) is the stronger pick with 12.

4% revenue growth year-over-year, versus -5. 7% for Parsons Corporation (PSN). Booz Allen Hamilton Holding Corporation (BAH) offers the better valuation at 10. 6x trailing P/E (12. 7x forward), making it the more compelling value choice. Analysts rate Parsons Corporation (PSN) a "Buy" — based on 17 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Booz Allen Hamilton Holding Corporation (BAH) is the cheapest at 10.

6x versus Parsons Corporation at 23. 3x. On forward P/E, Booz Allen Hamilton Holding Corporation is actually cheaper at 12. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Booz Allen Hamilton Holding Corporation wins at 0. 78x versus Parsons Corporation's 0. 87x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Parsons Corporation (PSN) delivered a total return of +18.

9%, compared to +2. 7% for Booz Allen Hamilton Holding Corporation (BAH). Over 10 years, the gap is even starker: BAH returned +227. 8% versus PSN's +70. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Booz Allen Hamilton Holding Corporation (BAH) is the lower-risk stock at 0.

35β versus Parsons Corporation's 0. 83β — meaning PSN is approximately 137% more volatile than BAH relative to the S&P 500. On balance sheet safety, Parsons Corporation (PSN) carries a lower debt/equity ratio of 53% versus 4% for Booz Allen Hamilton Holding Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Booz Allen Hamilton Holding Corporation (BAH) is pulling ahead at 12.

4% versus -5. 7% for Parsons Corporation (PSN). On earnings-per-share growth, the picture is similar: Booz Allen Hamilton Holding Corporation grew EPS 58. 0% year-over-year, compared to 3. 8% for Parsons Corporation. Over a 3-year CAGR, PSN leads at 14. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Booz Allen Hamilton Holding Corporation (BAH) is the more profitable company, earning 7.

8% net margin versus 3. 8% for Parsons Corporation — meaning it keeps 7. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BAH leads at 11. 4% versus 6. 6% for PSN. At the gross margin level — before operating expenses — BAH leads at 54. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Booz Allen Hamilton Holding Corporation (BAH) is the more undervalued stock at a PEG of 0. 78x versus Parsons Corporation's 0. 87x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Booz Allen Hamilton Holding Corporation (BAH) trades at 12. 7x forward P/E versus 15. 5x for Parsons Corporation — 2. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PSN: 69. 4% to $86. 80.

In this comparison, BAH (2.

7% yield) pays a dividend. PSN does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Booz Allen Hamilton Holding Corporation (BAH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

35), 2. 7% yield, +227. 8% 10Y return). Both have compounded well over 10 years (BAH: +227. 8%, PSN: +70. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: PSN is a small-cap quality compounder stock; BAH is a mid-cap deep-value stock. BAH pays a dividend while PSN does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.