Financial Contrast: VSE (NASDAQ:VSEC) versus Amentum (NYSE:AMTM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VSE	1.94%	7.25%	4.14%
Amentum	0.41%	10.90%	4.18%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VSE	$1.08 billion	3.15	$15.32 million	$1.12	146.86
Amentum	$8.39 billion	0.65	-$82.00 million	$0.39	57.83

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

Analyst Recommendations

This is a summary of current recommendations for VSE and Amentum, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VSE	0	0	5	0	3.00
Amentum	1	3	6	0	2.50

VSE presently has a consensus price target of $155.80, indicating a potential downside of 5.28%. Amentum has a consensus price target of $28.40, indicating a potential upside of 25.91%. Given Amentum’s higher possible upside, analysts clearly believe Amentum is more favorable than VSE.

Insider & Institutional Ownership

91.5% of VSE shares are held by institutional investors. Comparatively, 39.9% of Amentum shares are held by institutional investors. 2.3% of VSE shares are held by insiders. Comparatively, 18.7% of Amentum shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

VSE beats Amentum on 7 of the 13 factors compared between the two stocks.

About VSE

VSE Corporation operates as a diversified aftermarket products and services company in the United States. The company operates through two segments, Aviation and Fleet. The Aviation segment provides aftermarket parts supply and distribution; maintenance, repair, and overhaul services for components and engine accessories supporting commercial, business, and general aviation operators. This segment serves commercial airlines, regional airlines, cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators. The Fleet segment offers parts supply, inventory management, e-commerce fulfillment, logistics, supply chain support, and other services to support the commercial aftermarket medium- and heavy-duty truck market. This segment also provides sale of vehicle parts and supply chain services to support client truck fleets, as well as sustainment solutions and managed inventory services to government and commercial truck fleets. VSE Corporation was incorporated in 1959 and is headquartered in Alexandria, Virginia.

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.