BAH vs KBR: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
BAH is the larger of the two ($8.93B market cap): the incumbent the market prices for continued execution (11.03x forward earnings, beta 0.37). KBR is the smaller challenger ($4.59B), cheaper on forward earnings (8.93x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
BAH vs KBR: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | BAH | KBR | What it tells you |
|---|---|---|---|
| Market cap | $8.93B | $4.59B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 11.03 | 8.93 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 11.68 | 10.92 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.37 | 0.47 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 30% of range | 42% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 7.43 | 2.80 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: KBR is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how BAH and KBR affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. BAH and KBR share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined BAH and KBR exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Booz Allen Hamilton (BAH) do?
Booz Allen Hamilton is a management and technology consulting firm that works almost entirely for the US government, spanning the Defense Department, the intelligence community, and civilian agencies. Its people-heavy model deploys tens of thousands of cleared consultants and engineers on missions ranging from cyber defense and data analytics to AI deployment, systems modernization, and mission operations. The company carries a large multi-year backlog (recently around $38 billion) that provides visibility into future revenue, and it measures order momentum through a book-to-bill ratio.
What does KBR (KBR) do?
KBR, Inc. is a Houston-based company that provides engineering, technical, and professional services to government and commercial clients. It operates through two core segments: Government Solutions, which supports US and allied defense, intelligence, space, logistics, and mission programs, and Sustainable Technology Solutions, which licenses proprietary industrial process technologies tied to refining, chemicals, ammonia, and emissions reduction. The government business is by far the larger of the two, accounting for roughly 72 percent of overall sales, while the technology unit carries higher margins and licensing economics.
BAH vs KBR: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- BAH drivers: Defense and intelligence demand; Backlog and book-to-bill.
- KBR drivers: Defense and mission-support demand; Planned spinoff of the government unit.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The dominant risk is concentration: with roughly 98% of revenue from the US government, Booz Allen is highly exposed to federal budget decisions, procurement delays, and contract cancellations. For KBR, kBR depends heavily on US government budgets, appropriations timing, and contract awards, so shifts in defense or agency spending can pressure revenue.
BAH or KBR: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick BAH if you believe its drivers more; KBR if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the BAH and KBR guides.
BAH vs KBR: the full fundamentals
BAH. Booz Allen's revenue is still declining modestly as federal spending cuts and slower procurement reduce billable work, but cost discipline and buybacks have kept earnings ahead of expectations. At about 11 times forward earnings the stock trades well below its historical multiple, which prices in the federal spending reset. Consensus for fiscal 2027 (ending March 2027) is about $6.35 of EPS on roughly $11.4 billion of revenue, and the next report is on October 23, 2026.
KBR. As of October 2026, KBR trades near 11 times trailing and 9 times forward earnings, a discount to many government-services and engineering peers, even after four consecutive quarterly EPS beats. Trailing revenue is roughly $7.7 billion and EV to EBITDA is about 10.5x once ~$2.8 billion of debt is counted. The pending government-business spinoff still makes standalone valuation harder to pin down, and the October 29, 2026 report is the next data point.
Headline figures (approximate, October 2026): BAH shows revenue (ttm) ~$11.1B; latest quarter ~$2.80B, down ~4% year over year, margins (ttm) ~22% gross, ~10% operating, ~7% net, net income (ttm) ~$772M, adjusted eps (latest quarter) ~$1.81 vs ~$1.48 consensus (June 2026 quarter); KBR shows revenue (ttm) ~$7.7B (Q2 FY2026 up ~1.6% YoY), net income (ttm) ~$423M (net margin ~5.5%), adjusted eps (ttm) ~$3.33; Q2 FY2026 $0.99 vs ~$0.90 estimate, p/e (trailing / forward) ~10.9x / ~8.9x.
The bottom line: BAH vs KBR
BAH and KBR are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined BAH and KBR exposure against your real portfolio. It is not an investment adviser.
Wondering how BAH or KBR fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Booz Allen Hamilton with AI
Connect the broker you already use and ask Walnut's AI how BAH fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between BAH and KBR?
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Booz Allen Hamilton is a management and technology consulting firm that works almost entirely for the US government, spanning the Defense Department, the intelligence community, and civilian agencies. KBR, Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is BAH or KBR the better stock?
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Neither is universally better. BAH is the larger incumbent; KBR is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, BAH or KBR?
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On forward P/E (as of October 2026), BAH trades at 11.03x and KBR at 8.93x, so KBR is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both BAH and KBR?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of BAH vs KBR?
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BAH: The dominant risk is concentration: with roughly 98% of revenue from the US government, Booz Allen is highly exposed to federal budget decisions, procurement delays, and contract cancellations. The 2025 to 2026 push to cut federal spending drove revenue lower, prompted thousands of job cuts, and hit the civilian segment especially hard, with some Civil revenue down sharply. Reputational and compliance risk is real too, as seen when the Treasury moved to terminate contracts tied to a historic data-breach matter. A prolonged shift away from consultants, tighter margins from competitive re-competes, and dependence on cleared-labor availability all add uncertainty. If defense and intelligence growth fails to offset civilian declines, revenue and earnings could stay under pressure. Leverage also matters more in a shrinking-revenue period: debt of about $4.2 billion is several times the cash balance, and analysts expect revenue to fall again in fiscal 2027 before returning to growth. KBR: KBR depends heavily on US government budgets, appropriations timing, and contract awards, so shifts in defense or agency spending can pressure revenue. The planned spinoff introduces execution, tax, and dis-synergy risk, and the timeline could slip. Contingency and overseas contract runoff (such as European work) has already reduced revenue and could continue. Competition from larger services rivals can compress win rates and pricing. The energy-transition technology business is exposed to cyclical industrial capital spending and project timing. Leverage is also part of the picture: KBR carries about $2.8 billion of debt against roughly $323 million of cash, a debt-to-equity ratio near 170 percent, which narrows flexibility as the separation approaches. Shares have fallen about 17 percent over the past year, so the market is still discounting the spinoff and budget uncertainty despite consistent earnings beats.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell BAH or KBR; figures are approximate and dated (as of October 2026). Verify current data before investing.