Reviewing Heritage Global (NASDAQ:HGBL) & Amentum (NYSE:AMTM)

Amentum (NYSE:AMTM) and Heritage Global (NASDAQ:HGBL) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Amentum and Heritage Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	0	0	2	0	3.00
Heritage Global	0	0	0	0	0.00

Amentum presently has a consensus target price of $30.50, indicating a potential upside of 35.14%. Given Amentum’s stronger consensus rating and higher probable upside, equities analysts clearly believe Amentum is more favorable than Heritage Global.

Insider and Institutional Ownership

39.9% of Amentum shares are owned by institutional investors. Comparatively, 33.5% of Heritage Global shares are owned by institutional investors. 12.8% of Heritage Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Amentum and Heritage Global”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amentum	$8.39 billion	0.65	N/A	N/A	N/A
Heritage Global	$49.88 million	1.38	$12.48 million	$0.28	6.57

Heritage Global has lower revenue, but higher earnings than Amentum.

Profitability

This table compares Amentum and Heritage Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amentum	N/A	N/A	N/A
Heritage Global	20.60%	16.05%	11.90%

About Amentum

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.

About Heritage Global

Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company operates in three segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. It provides a suite of market making, acquisitions, refurbishment, dispositions, valuations, and secured lending services. The company focuses on identifying, valuing, acquiring, and monetizing underlying tangible assets. It acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; and charged-off receivable portfolios. The company was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global, Inc. in August 2013. Heritage Global, Inc. was founded in 1937 and is headquartered in San Diego, California.