Critical Review: Chiyoda (OTCMKTS:CHYCY) & Amentum (NYSE:AMTM)

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

Institutional & Insider Ownership

39.9% of Amentum shares are held by institutional investors. 19.4% of Amentum shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amentum	0.69%	11.56%	4.59%
Chiyoda	16.68%	156.91%	18.14%

Volatility & Risk

Amentum has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, Chiyoda has a beta of -0.44, meaning that its share price is 144% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Amentum and Chiyoda, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	0	7	6	0	2.46
Chiyoda	0	0	0	0	0.00

Amentum currently has a consensus price target of $34.91, suggesting a potential upside of 16.95%. Given Amentum’s stronger consensus rating and higher probable upside, analysts plainly believe Amentum is more favorable than Chiyoda.

Earnings and Valuation

This table compares Amentum and Chiyoda”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amentum	$14.39 billion	0.51	$66.00 million	$0.40	74.63
Chiyoda	$3.00 billion	0.86	$178.11 million	$0.63	15.67

Chiyoda has lower revenue, but higher earnings than Amentum. Chiyoda 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 Chiyoda on 8 of the 14 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 Chiyoda

Chiyoda Corporation engages in the integrated engineering business in Japan and internationally. It offers consulting, planning, engineering, procurement, construction, commissioning, and maintenance services for facilities related to gas, electricity, petroleum, petrochemical, chemical, pharmaceutical, antipollution, environment, preservation, and others. The company also explores for oil, gas, and other mineral resources, as well as invests in and finances exploration activities. Chiyoda Corporation was incorporated in 1948 and is headquartered in Yokohama, Japan.