Critical Comparison: Amentum (AMTM) and Its Rivals

Amentum (NYSE:AMTM) is one of 203 publicly-traded companies in the “Professional Services” industry, but how does it contrast to its competitors? We will compare Amentum to similar companies based on the strength of its profitability, institutional ownership, valuation, earnings, risk, analyst recommendations and dividends.

Profitability

This table compares Amentum and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amentum	1.44%	12.19%	5.08%
Amentum Competitors	0.35%	36.82%	4.45%

Insider & Institutional Ownership

39.9% of Amentum shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are owned by institutional investors. 19.4% of Amentum shares are owned by insiders. Comparatively, 17.1% of shares of all “Professional Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Amentum has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500. Comparatively, Amentum’s competitors have a beta of 0.96, indicating that their average stock price is 4% less volatile than the S&P 500.

Valuation and Earnings

This table compares Amentum and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amentum	$14.39 billion	$66.00 million	26.67
Amentum Competitors	$3.30 billion	$228.40 million	31.81

Amentum has higher revenue, but lower earnings than its competitors. Amentum is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations for Amentum and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	0	8	5	0	2.38
Amentum Competitors	1614	6488	9176	433	2.48

Amentum presently has a consensus target price of $28.91, indicating a potential upside of 30.59%. As a group, “Professional Services” companies have a potential upside of 27.28%. Given Amentum’s higher possible upside, equities research analysts plainly believe Amentum is more favorable than its competitors.

Summary

Amentum competitors beat Amentum on 8 of the 13 factors compared.

Amentum Company Profile

Amentum is a provider of engineering, technical and mission-support services for government and commercial customers. Its work includes managing and operating facilities and infrastructure, maintaining equipment, providing logistics and program-management support, and delivering technology and cybersecurity services. The company serves customers in areas including defense, intelligence, space, energy and environmental remediation. Its clients include U.S. government agencies and customers in other countries, with work spanning operations and support as well as complex engineering and technology projects.