Critical Contrast: Amentum (NYSE:AMTM) vs. Metallurgical Corp. of China (OTCMKTS:MLLUY)

Metallurgical Corp. of China (OTCMKTS:MLLUY) and Amentum (NYSE:AMTM) are both mid-cap construction companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Metallurgical Corp. of China and Amentum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Metallurgical Corp. of China	N/A	N/A	N/A
Amentum	0.41%	10.90%	4.18%

Analyst Ratings

This is a breakdown of current recommendations for Metallurgical Corp. of China and Amentum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metallurgical Corp. of China	0	0	0	0	0.00
Amentum	2	5	6	0	2.31

Amentum has a consensus target price of $28.25, indicating a potential upside of 11.21%. Given Amentum’s stronger consensus rating and higher probable upside, analysts clearly believe Amentum is more favorable than Metallurgical Corp. of China.

Insider & Institutional Ownership

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

Risk & Volatility

Metallurgical Corp. of China has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Amentum has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500.

Earnings and Valuation

This table compares Metallurgical Corp. of China and Amentum”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metallurgical Corp. of China	$76.79 billion	0.07	$938.36 million	$0.58	9.36
Amentum	$8.39 billion	0.74	-$82.00 million	$0.39	65.13

Metallurgical Corp. of China has higher revenue and earnings than Amentum. Metallurgical Corp. of China 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 Metallurgical Corp. of China on 10 of the 14 factors compared between the two stocks.

About Metallurgical Corp. of China

Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in the engineering contracting, property development, equipment manufacture, and resource development businesses in China and internationally. The company’s Engineering Contracting segment offers engineering, construction, and other related contracting services for metallurgical and non-metallurgical projects. Its Property Development segment develops and sells residential and commercial properties, and housing properties; and develops land. The company’s Equipment Manufacturing segment engages in the development and production of metallurgical equipment, steel structures, and other metal products. Its Resource Development segment is involved in the development, mining, and processing of mineral resources; and the production of nonferrous metals and polysilicon. The company was founded in 2008 and is based in Beijing, the People’s Republic of China.

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.