Reviewing Amentum (AMTM) & Its Peers

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

Profitability

This table compares Amentum and its peers’ 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%	32.27%	7.19%

Analyst Ratings

This is a summary of current ratings and price targets for Amentum and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	1	4	4	0	2.33
Amentum Competitors	47	524	1037	24	2.64

Amentum presently has a consensus price target of $27.00, indicating a potential upside of 7.19%. As a group, “ENGINRG/R&D SVS” companies have a potential upside of 12.02%. Given Amentum’s peers stronger consensus rating and higher possible upside, analysts clearly believe Amentum has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Amentum and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amentum	$8.39 billion	-$82.00 million	64.59
Amentum Competitors	$8.30 billion	$330.08 million	31.81

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

Institutional and Insider 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, 4.8% of shares of all “ENGINRG/R&D SVS” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Amentum peers 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.