Amentum (NYSE:AMTM) & Forrester Research (NASDAQ:FORR) Critical Contrast

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

Analyst Recommendations

This is a summary of recent recommendations for Forrester Research and Amentum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forrester Research	1	1	0	0	1.50
Amentum	1	7	5	0	2.31

Amentum has a consensus target price of $29.18, suggesting a potential upside of 45.91%. Given Amentum’s stronger consensus rating and higher possible upside, analysts plainly believe Amentum is more favorable than Forrester Research.

Institutional and Insider Ownership

55.2% of Forrester Research shares are owned by institutional investors. Comparatively, 39.9% of Amentum shares are owned by institutional investors. 40.7% of Forrester Research shares are owned by company insiders. Comparatively, 19.4% of Amentum shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forrester Research	$396.89 million	0.59	-$119.36 million	($2.25)	-5.44
Amentum	$14.39 billion	0.34	$66.00 million	$0.83	24.10

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Forrester Research	-11.17%	6.19%	1.93%
Amentum	1.44%	12.19%	5.08%

Risk and Volatility

Forrester Research has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Amentum has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Summary

Amentum beats Forrester Research on 10 of the 14 factors compared between the two stocks.

About Forrester Research

Forrester Research, Inc. operates as an independent research and advisory company in the United States and internationally. The company operates in three segments: Research, Consulting, and Events. The Research segment primary subscription research services include Forrester Decisions, Forrester Research, and SiriusDecisions Research, which are designed to provide business and technology leaders with a proven path to growth through customer obsession. This segment delivers content, such as future trends, predictions, and market forecasts; deep consumer and business buyer data and insights; curated best practice models and tools to run business functions; operational and performance benchmarking data; and technology and service market landscapes and vendor evaluations. The Consulting segment provides consulting projects, include conducting maturity assessments, prioritizing best practices, developing strategies, building business cases, selecting technology vendors, structuring organizations, developing content marketing strategies and collateral, and sales tools; and advisory services. The Events segment hosts events related to business-to-business marketing, sales and product leadership, customer experience, security and risk, new technology and innovation, and data strategies and insights. The company sells its products and services through direct sales force in various locations. Forrester Research, Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.

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.