Reviewing Gartner (NYSE:IT) and Amentum (NYSE:AMTM)

Gartner (NYSE:IT) and Amentum (NYSE:AMTM) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gartner	11.99%	525.46%	13.45%
Amentum	1.44%	12.19%	5.08%

Insider & Institutional Ownership

91.5% of Gartner shares are held by institutional investors. Comparatively, 39.9% of Amentum shares are held by institutional investors. 2.6% of Gartner 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, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Gartner has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Amentum has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gartner	$6.50 billion	2.12	$729.23 million	$11.15	19.54
Amentum	$14.39 billion	0.34	$66.00 million	$0.83	24.20

Gartner has higher earnings, but lower revenue than Amentum. Gartner 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 recommendations and price targets for Gartner and Amentum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gartner	1	8	1	0	2.00
Amentum	2	6	5	0	2.23

Gartner presently has a consensus target price of $198.50, suggesting a potential downside of 8.90%. Amentum has a consensus target price of $29.00, suggesting a potential upside of 44.39%. Given Amentum’s stronger consensus rating and higher possible upside, analysts clearly believe Amentum is more favorable than Gartner.

Summary

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

About Gartner

Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

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.