Maximus (NYSE:MMS) versus Amentum (NYSE:AMTM) Financial Survey

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

Profitability

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

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

Insider and Institutional Ownership

39.9% of Amentum shares are owned by institutional investors. Comparatively, 97.2% of Maximus shares are owned by institutional investors. 19.4% of Amentum shares are owned by company insiders. Comparatively, 1.8% of Maximus shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amentum	1	7	5	0	2.31
Maximus	0	2	0	0	2.00

Amentum currently has a consensus price target of $29.00, suggesting a potential upside of 50.26%. Given Amentum’s stronger consensus rating and higher possible upside, research analysts plainly believe Amentum is more favorable than Maximus.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amentum	$14.13 billion	0.33	$66.00 million	$0.83	23.25
Maximus	$5.43 billion	0.57	$319.03 million	$6.77	8.77

Maximus has lower revenue, but higher earnings 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.

Summary

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

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.

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.