Analyzing Amentum (NYSE:AMTM) and Chiyoda (OTCMKTS:CHYCY)

Chiyoda (OTCMKTS:CHYCY) and Amentum (NYSE:AMTM) are both mid-cap construction companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chiyoda	16.68%	156.91%	18.14%
Amentum	0.69%	11.56%	4.59%

Analyst Ratings

This is a summary of current recommendations for Chiyoda and Amentum, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chiyoda	0	0	0	0	0.00
Amentum	0	7	6	0	2.46

Amentum has a consensus target price of $34.91, suggesting a potential upside of 16.95%. Given Amentum’s stronger consensus rating and higher possible upside, analysts clearly believe Amentum is more favorable than Chiyoda.

Institutional and Insider Ownership

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

Valuation & Earnings

This table compares Chiyoda and Amentum”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chiyoda	$3.00 billion	0.86	$178.11 million	$0.63	15.67
Amentum	$14.39 billion	0.51	$66.00 million	$0.40	74.63

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

Volatility and Risk

Chiyoda has a beta of -0.27, meaning that its share price is 127% less volatile than the S&P 500. Comparatively, Amentum has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500.

Summary

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

About Chiyoda

Chiyoda Corporation engages in the integrated engineering business in Japan and internationally. It offers consulting, planning, engineering, procurement, construction, commissioning, and maintenance services for facilities related to gas, electricity, petroleum, petrochemical, chemical, pharmaceutical, antipollution, environment, preservation, and others. The company also explores for oil, gas, and other mineral resources, as well as invests in and finances exploration activities. Chiyoda Corporation was incorporated in 1948 and is headquartered in Yokohama, Japan.

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.