Magnera (NYSE:MAGN) & Amentum (NYSE:AMTM) Critical Review

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

Analyst Recommendations

This is a summary of recent recommendations for Amentum and Magnera, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	2	4	6	0	2.33
Magnera	1	2	0	0	1.67

Amentum presently has a consensus price target of $28.55, indicating a potential upside of 24.93%. Magnera has a consensus price target of $16.50, indicating a potential upside of 66.58%. Given Magnera’s higher probable upside, analysts plainly believe Magnera is more favorable than Amentum.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amentum	0.41%	10.90%	4.18%
Magnera	-4.98%	-9.57%	-3.49%

Institutional and Insider Ownership

39.9% of Amentum shares are held by institutional investors. Comparatively, 76.9% of Magnera shares are held by institutional investors. 18.7% of Amentum shares are held by insiders. Comparatively, 2.3% of Magnera shares are held 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.

Valuation & Earnings

This table compares Amentum and Magnera”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	0.66	-$82.00 million	$0.39	58.59
Magnera	$1.31 billion	0.27	-$15.25 million	($7.64)	-1.30

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

Summary

Amentum beats Magnera on 10 of the 13 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 Magnera

Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions propel our customers’ goals forward and solve end-users’ problems, every day.