Parsons (NYSE:PSN) & Amentum (NYSE:AMTM) Critical Analysis

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amentum	$14.13 billion	0.35	$66.00 million	$0.83	24.02
Parsons	$6.29 billion	0.77	$241.14 million	$1.45	31.28

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

Risk & Volatility

Amentum has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Parsons has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Insider and Institutional Ownership

39.9% of Amentum shares are held by institutional investors. Comparatively, 98.0% of Parsons shares are held by institutional investors. 19.4% of Amentum shares are held by company insiders. Comparatively, 1.3% of Parsons shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amentum	1.44%	12.19%	5.08%
Parsons	2.50%	8.10%	3.75%

Analyst Ratings

This is a summary of current ratings and price targets for Amentum and Parsons, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	1	7	5	0	2.31
Parsons	2	3	11	0	2.56

Amentum presently has a consensus price target of $29.18, indicating a potential upside of 46.35%. Parsons has a consensus price target of $64.08, indicating a potential upside of 41.31%. Given Amentum’s higher probable upside, analysts plainly believe Amentum is more favorable than Parsons.

Summary

Parsons beats Amentum on 9 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 Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.