Critical Review: Amentum (AMTM) & The Competition

Amentum (NYSE:AMTM) is one of 25 public companies in the “ENGINRG/R&D SVS” industry, but how does it contrast to its competitors? We will compare Amentum to similar companies based on the strength of its analyst recommendations, valuation, profitability, risk, earnings, dividends and institutional ownership.

Insider and Institutional Ownership

39.9% of Amentum shares are owned by institutional investors. Comparatively, 69.8% of shares of all “ENGINRG/R&D SVS” companies are owned by institutional investors. 18.7% of Amentum shares are owned by insiders. Comparatively, 5.9% of shares of all “ENGINRG/R&D SVS” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Amentum and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	1	4	5	0	2.40
Amentum Competitors	48	525	1040	25	2.64

Amentum presently has a consensus price target of $27.30, suggesting a potential upside of 8.27%. As a group, “ENGINRG/R&D SVS” companies have a potential upside of 9.09%. Given Amentum’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Amentum has less favorable growth aspects than its competitors.

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	0.41%	10.90%	4.18%
Amentum Competitors	6.89%	30.78%	7.17%

Valuation and Earnings

This table compares Amentum and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amentum	$8.39 billion	-$82.00 million	64.65
Amentum Competitors	$8.29 billion	$330.08 million	32.32

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

Summary

Amentum competitors beat Amentum on 9 of the 12 factors compared.

Amentum Company Profile

Amentum Holdings, Inc. provides engineering and technology solutions to address challenges in science, security, and sustainability. It serves various markets, such as energy and environment, space, intelligence, defense, civilian, commercial, and international markets. The company was incorporated in 2010 and is headquatered in Chantilly, Virginia.