Gartner (NYSE:IT – Get Free Report) and Amentum (NYSE:AMTM – Get Free Report) 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.
Receive News & Ratings for Gartner Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gartner and related companies with MarketBeat.com's FREE daily email newsletter.
