Comparing Mayville Engineering (NYSE:MEC) & Amentum (NYSE:AMTM)

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

Insider & Institutional Ownership

45.4% of Mayville Engineering shares are owned by institutional investors. Comparatively, 39.9% of Amentum shares are owned by institutional investors. 7.2% of Mayville Engineering shares are owned by insiders. Comparatively, 18.7% of Amentum shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Mayville Engineering and Amentum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mayville Engineering	3.41%	8.21%	4.52%
Amentum	0.41%	10.90%	4.18%

Valuation and Earnings

This table compares Mayville Engineering and Amentum”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mayville Engineering	$524.61 million	0.56	$25.97 million	$0.85	16.96
Amentum	$8.39 billion	0.73	-$82.00 million	$0.39	64.77

Mayville Engineering has higher earnings, but lower revenue than Amentum. Mayville Engineering is trading at a lower price-to-earnings ratio than Amentum, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Mayville Engineering and Amentum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mayville Engineering	0	0	3	1	3.25
Amentum	1	4	5	0	2.40

Mayville Engineering currently has a consensus target price of $20.6667, indicating a potential upside of 43.38%. Amentum has a consensus target price of $27.30, indicating a potential upside of 8.08%. Given Mayville Engineering’s stronger consensus rating and higher possible upside, equities analysts plainly believe Mayville Engineering is more favorable than Amentum.

Summary

Mayville Engineering beats Amentum on 8 of the 14 factors compared between the two stocks.

About Mayville Engineering

Mayville Engineering Company, Inc., together with its subsidiaries, engages in the production, design, prototyping and tooling, fabrication, aluminum extrusion, coating, and assembling of aftermarket components in the United States. It also supplies engineered components to original equipment manufacturers. The company serves heavy and medium duty commercial vehicles, construction and access equipment, powersports, agriculture, military, and other end markets. Mayville Engineering Company, Inc. was founded in 1945 and is headquartered in Milwaukee, Wisconsin.

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.