Comparing Amentum (NYSE:AMTM) and AECOM (NYSE:ACM)

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

Insider and Institutional Ownership

39.9% of Amentum shares are owned by institutional investors. Comparatively, 85.4% of AECOM shares are owned by institutional investors. 18.7% of Amentum shares are owned by company insiders. Comparatively, 0.4% of AECOM shares are owned 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amentum	$8.39 billion	0.68	-$82.00 million	N/A	N/A
AECOM	$16.11 billion	0.93	$402.27 million	$4.59	24.58

AECOM has higher revenue and earnings than Amentum.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amentum	N/A	N/A	N/A
AECOM	3.85%	27.67%	5.65%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Amentum and AECOM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	1	4	4	0	2.33
AECOM	0	0	7	0	3.00

Amentum presently has a consensus target price of $25.22, suggesting a potential upside of 7.47%. AECOM has a consensus target price of $120.86, suggesting a potential upside of 7.11%. Given Amentum’s higher probable upside, research analysts clearly believe Amentum is more favorable than AECOM.

Summary

AECOM beats Amentum on 9 of the 11 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 AECOM

AECOM, together with its subsidiaries, provides professional infrastructure consulting services worldwide. It operates in three segments: Americas, International, and AECOM Capital. The company offers planning, consulting, architectural and engineering design, construction and program management, and investment and development services to public and private clients. It is also involved in the investment and development of real estate projects. In addition, the company provides construction services, including building construction and energy, and infrastructure and industrial construction. It serves transportation, water, government, facilities, environmental, and energy sectors. The company was formerly known as AECOM Technology Corporation and changed its name to AECOM in January 2015. AECOM was incorporated in 1980 and is headquartered in Dallas, Texas.