Amentum (NYSE:AMTM) & Maximus (NYSE:MMS) Financial Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Maximus	7.07%	24.91%	10.08%
Amentum	1.44%	12.19%	5.08%

Institutional & Insider Ownership

97.2% of Maximus shares are held by institutional investors. Comparatively, 39.9% of Amentum shares are held by institutional investors. 1.8% of Maximus shares are held by insiders. Comparatively, 19.4% of Amentum shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Maximus and Amentum”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Maximus	$5.43 billion	0.52	$319.03 million	$6.77	8.04
Amentum	$14.39 billion	0.31	$66.00 million	$0.83	22.04

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Maximus and Amentum, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maximus	0	2	0	0	2.00
Amentum	2	6	5	0	2.23

Amentum has a consensus price target of $29.18, suggesting a potential upside of 59.55%. Given Amentum’s stronger consensus rating and higher probable upside, analysts clearly believe Amentum is more favorable than Maximus.

Risk and Volatility

Maximus has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Amentum has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Summary

Maximus beats Amentum on 8 of the 14 factors compared between the two stocks.

About Maximus

Maximus, Inc. operates as a provider of government services in the United States and internationally. It operates through three segments: U.S. Federal Services, U.S. Services, and Outside the U.S. The U.S. Services segment offers program eligibility support and enrollment; centralized multilingual customer contact centers, multichannel, and digital self-service options for enrollment; application assistance and independent health plan choice counseling; beneficiary outreach, education, eligibility, enrollment, and redeterminations; and person-centered independent disability, long-term sick, and other health assessments. This segment also provides employment services, such as eligibility support, case management, job-readiness preparation, job search and employer outreach, job retention and career advancement, and educational and training services; technology solutions; system implementation project management services; and specialized consulting services. The U.S. Federal Services segment offers Business process services, eligibility and enrollment, outreach, and other services for federal health and human services programs; clinical services; and technology solutions, including application development and modernization services, enterprise business solutions, advanced analytics and emerging technologies, cybersecurity services, and infrastructure and engineering solutions. The Outside the U.S. segment offers BPS solutions for international governments, including health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker-related services. Maximus, Inc. was founded in 1975 and is headquartered in McLean, 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.