Critical Contrast: Amentum (NYSE:AMTM) versus Quanta Services (NYSE:PWR)

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

Analyst Recommendations

This is a breakdown of recent ratings for Amentum and Quanta Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	1	4	4	0	2.33
Quanta Services	0	11	13	1	2.60

Amentum currently has a consensus target price of $25.89, indicating a potential upside of 6.63%. Quanta Services has a consensus target price of $375.23, indicating a potential downside of 8.88%. Given Amentum’s higher possible upside, equities research analysts clearly believe Amentum is more favorable than Quanta Services.

Profitability

This table compares Amentum and Quanta Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amentum	N/A	N/A	N/A
Quanta Services	3.74%	18.06%	7.08%

Valuation & Earnings

This table compares Amentum and Quanta Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amentum	$8.39 billion	0.70	-$82.00 million	N/A	N/A
Quanta Services	$23.67 billion	2.58	$904.82 million	$6.20	66.42

Quanta Services has higher revenue and earnings than Amentum.

Institutional and Insider Ownership

39.9% of Amentum shares are held by institutional investors. Comparatively, 90.5% of Quanta Services shares are held by institutional investors. 18.7% of Amentum shares are held by insiders. Comparatively, 1.1% of Quanta Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Quanta Services beats Amentum on 10 of the 12 factors compared between the two stocks.

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 Quanta Services

Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company’s Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company’s Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company’s Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.