Amentum (NYSE:AMTM) vs. BGSF (NYSE:BGSF) Critical Survey

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

Risk and Volatility

BGSF has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Amentum has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BGSF	$93.31 million	0.47	-$11.43 million	($0.74)	-5.51
Amentum	$14.39 billion	0.36	$66.00 million	$0.83	25.59

Amentum has higher revenue and earnings than BGSF. BGSF 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 BGSF and Amentum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BGSF	-8.99%	-13.69%	-10.60%
Amentum	1.44%	12.19%	5.08%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BGSF	1	0	0	0	1.00
Amentum	2	6	5	0	2.23

Amentum has a consensus target price of $29.00, indicating a potential upside of 36.52%. Given Amentum’s stronger consensus rating and higher probable upside, analysts clearly believe Amentum is more favorable than BGSF.

Insider & Institutional Ownership

37.2% of BGSF shares are owned by institutional investors. Comparatively, 39.9% of Amentum shares are owned by institutional investors. 7.1% of BGSF shares are owned by insiders. Comparatively, 19.4% of Amentum shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Amentum beats BGSF on 12 of the 14 factors compared between the two stocks.

About BGSF

BGSF, Inc., together with its subsidiaries, provides consulting, managed services, and professional workforce solutions in the United States. It operates in two segments, Property Management and Professional. The Property Management segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, management services, and other IT workforce solutions. This segment also offers finance, accounting, legal, human resource, and related support personnel. It serves its products to fortune 500 companies, and medium and small companies, as well as consulting companies. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.

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.